Yahoo Finance Volvo’s last ever diesel car rolls off production line
Volvo has produced its last ever diesel car, ending an era spanning 45 years.
The Swedish company’s final diesel-engine vehicle, an XC90 SUV, rolled off the production line on Tuesday at its plant near Gothenburg.
The car will now be sent to a Volvo museum opening in the city next month.
Volvo is thought to have been the first major manufacturer to completely end diesel production.
The XC90 was key to the car maker’s revival after it was bought by Chinese giant Geely for $1.3bn in 2010.
Under Geely’s ownership, Volvo has unveiled a new lineup of electric vehicles (EVs) – including the XC90’s replacement, the EX90. Volvo is pursuing plans to go all-electric by 2030.
In a statement, entitled “Dear diesel, it’s time to say goodbye”, the company said diesel engines had been “our bread and butter in Europe” as recently as five years ago.
But tightening government regulations and consumer demand had changed this, it added.
The statement said: “Today, most of our sales on the Continent are electrified cars.
“The figures speak for themselves, underscoring that the all-electric direction we’re now heading towards is the right one to take, and we do so with our flag held high.
“While our future indeed is fully electric, our mixed portfolio includes some excellent plug-in hybrid and mild-hybrid models, which will act as a perfect bridge towards that future.”
It comes as other car makers have delayed their shift to EVs amid concerns about a slowdown in demand.
Mercedes, Audi, Aston Martin and Bentley are among the manufacturers that have delayed product launches, scaled back production or cut sales forecasts.
Volvo became the first major car maker to vow to phase out fossil fuel cars in 2017.
On Wednesday the company said EVs now represent 34pc of its global sales.
Diesel was at one stage promoted as a cleaner alternative to petrol but demand collapsed in the wake of the “dieselgate” scandal, when it emerged that cars that had ostensibly passed European emissions tests actually failed under normal driving conditions.
Volvo said it would continue supporting diesel drivers with spare parts.
As recently as 2015, diesel cars accounted for nearly all cars sold in the UK.
However, that number has rapidly tumbled in the wake of dieselgate, falling to 32pc in 2018 and less than 4pc last year, data from the Society of Motor Manufacturers and Traders (SMMT) shows.
In 2023, about 71,500 diesel cars were sold in the UK compared to 774,500 petrol cars, 742,400 hybrids and 314,700 electric cars.
Across the European Union, diesel’s share is bigger but still in decline.
Some 14pc of cars sold in the bloc last year were diesel-fuelled, according to the European Automobile Manufacturers’ Association.
That compared to 35pc of petrol engines and 15pc that were battery EVs.
However, growth in EV sales has slowed in recent months as car makers struggle to maintain momentum.
As consumers baulk at high prices and a lack of charging infrastructure, there are fears among European manufacturers that Chinese competitors will undercut the market with cheaper alternatives.
Volvo had previously backed Polestar, an unprofitable EV manufacturer billed as a rival to US star Tesla, but recently pulled away from providing the company further funding.
Instead, Volvo’s parent Geely has taken over responsibility for the business.