Volvo to stop developing new diesel engines

Volvo won't be developing any new-generation diesel engines. This revelation was made by the company's CEO, Hakan Samuelsson. 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.

However, the Swedish carmaker will continue to tweak and develop the current diesel engine line-up to meet any upcoming emission norms. Volvo introduced new-generation diesel engines in 2013 and is planning to use these powerplants till 2023. Interestingly, diesel is still a popular choice for Volvo customers in Europe as the company claims that around 90% sales of its flagship SUV - the XC90, have come for the diesel models.

Meanwhile, Volvo is eyeing heavily on the electric and hybrid car scene. The automaker has already announced that it will unveil its first ever fully electric vehicle by 2019, with deliveries expected to start by 2021. The company's CEO has also pointed towards the popularity and success that Tesla has received for its electric cars and has indicated that Volvo too will try to find a space for themselves in the niche segment of all-electric luxury cars.

Source: Autonews