Volvo’s latest Drive-E engines could be its last. According to CEO Hakan Samuelsson: Volvo to stop new Diesel engines, as emissions standards are tightened.

Europe is pushing on with its fight against pollution caused by road users. Car emissions will likely be tightened for a sixth time. When the rules came into effect in 1992, car makers were able to adapt to the new rules. However, that has changed.

Companies now need to find new ways to improve their cars, with pollution limits becoming smaller. The money spent on developing and making these new parts is costing car makers dearly.

As a result, Volvo Cars CEO Hakan Samuelsson has revealed that the company plans to stop making new diesel engines.

“From today’s perspective, we will not develop any more new generation diesel engines,” Samuelsson confirmed.

There are no plans to develop new engines in the future. Although, the company will continue to use their latest diesel engines. They spent €235 million on development prior to its 2013 release. The company is likely to continue using the engine until 2023, but they will have make changes to maintain its compliance.


Hakan Samuelsson: Volvo to stop new diesel engines, but what’s next for the car manufacturers?

Nitrogen oxide emission standards are forcing Volvo out of the diesel market. However, the company plans to plug the gap by moving into the electric car market.

Volvo has already had some success in the hybrid market with the XC90 T8, which uses a petrol engine as well as an electric motor. They now plan to release their first electric car in 2019.

The company has set the target of selling one million electric cars by 2025.

Elon Musk’s Tesla, Inc. leads the electric car market. They hold a 31% market share in the United States and interest is growing in Europe. However, Volvo believes that there is still space for them in the electric car market.

Electric cars: The future of driving?

With governments cracking down on pollution, more and more car makers are looking to break into the electric car market. The Volkswagen scandal, in which the car giants were found to have cheated emissions tests, has frightened others that were looking to get around the tighter limits. That poor move could cost the company up to $18 billion and others won’t want to make the same mistake.


Yet, unable to cover the costs of passing the tests legally, many will choose to leave the diesel market. The likes of BMW, Ford and Honda have now released electric cars and more will follow over the next few years. Electric car sales have grown at a rate of 56.5% since 2014. The demand is growing and manufacturers will surely provide.

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