19 May, 2017
The said decision is a result of rising costs of reducing nitrogen oxide emissions from diesel engines, after various countries started adopting stringent emission laws for diesel vehicles.
In an interview with German's Frankfurter Allgemeine Zeitung, Samuelsson said that as of now, the company has no plans to work further on any new generation diesel engines.
Samuelsson said Volvo would continue to improve the current range, which was first introduced in 2013, to meet emissions standards in the future. That's down to anticipated high costs for making diesels compliant with upcoming emissions standards. The CEO expects that tighter regulations will simply steer automakers away from diesel engines for passenger cars, with companies switching to hybrids and electrics - something already noticeable in the marketplace.
The money, machine and manpower saved will be invested in developing electric and hybrid powertrains instead.
"We have just launched a brand-new generation of petrol and diesel engines, highlighting our commitment to this technology", Samuelsson told Reuters in a statement.
Volvo predicts that with mid-cycle improvements the engine will be useful until about 2023, but that the cost of developing a new diesel engine after that will be too high to be feasible. This is partly due to the popularity of diesel vehicles in Europe, accounting for over 50% of all new registrations there.
The scandal over Volkwagen's cheating of USA environmental tests to mask emissions of nitrogen oxides, which can cause or aggravate respiratory disease, means manufacturers are facing intense scrutiny over the true level of pollutants being emitted by their cars.