Menu

Search

  |   Technology

Menu

  |   Technology

Search

Volvo Could Stop Developing Diesel Engines In Favor Of Electric Cars, Blame Tesla

Volvo.Jabra.Pixabay

Tesla is currently the leading figure in the fight to revolutionize the auto industry and push electric vehicles to be the main transportation option on the road. According to new reports, it seems Volvo is keen on following the American company’s lead and would invest more in electric cars. What’s more, the car maker might actually stop developing diesel engines as a result.

The new revelation was made by the company’s President and CEO, Hakan Samuelsson when he spoke with Frankfurter Allgemeine Zeitung. During that interview, Samuelsson said that moving forward, Volvo will no longer create new diesel engines.

“From today’s perspective, we will not develop any more new generation diesel engines,” the Volvo boss said.

However, in subsequent clarifications, it seems that the company would not simply stop selling diesel models right away. In an email to Reuters, Samuelsson said that diesel cars are still going to be part of Volvo’s business model. Since they are more efficient than vehicles that run on gasoline, they would still be helping in the company’s bid to meet goals of reducing carbon emissions.

"We have just launched a brand new generation of petrol and diesel engines, highlighting our commitment to this technology. As a result, a decision on the development of a new generation of diesel engines is not required," the email reads said.

Now, much of the reasons for declaring diesel engine developments unsustainable stems from the fact that the EU’s regulations are getting tighter as the years pass. Samuelsson acknowledged this when he said that developing and selling diesel vehicles would only be a good idea until 2020. After that, it simply wouldn’t be worth it.

As for the main reason for why the auto industry is following along such a path, it might have a lot to do with Tesla, Futurism reports. Volvo admitted that the popularity of the cars that Elon Musk’s company is producing has forced Volvo to take a long, hard look at electric vehicles and what they mean to the company’s future.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

May 26 14:30 UTC Released

USECRI Weekly Annualized*

Actual

5.1 %

Forecast

Previous

5.0 %

May 26 14:30 UTC Released

USECRI Weekly Index*

Actual

144.1 %

Forecast

Previous

144.5 %

May 28 15:00 UTC 26492649m

SAM3 Money Supply YY*

Actual

Forecast

Previous

0.0 %

May 28 15:00 UTC 26492649m

SAPvt Sector Loans YY*

Actual

Forecast

Previous

-0.1 %

May 29 08:00 UTC 36693669m

EZLoans to Households*

Actual

Forecast

Previous

2.4 %

May 29 08:00 UTC 36693669m

EZLoans to Non-Fin

Actual

Forecast

Previous

2.3 %

May 29 08:00 UTC 36693669m

EZMoney-M3 Annual Grwth*

Actual

Forecast

5.2 %

Previous

5.3 %

May 29 23:30 UTC 45994599m

JPAll Household Spending MM*

Actual

Forecast

1.1 %

Previous

-2 %

May 29 23:30 UTC 45994599m

JPAll Household Spding YY*

Actual

Forecast

-0.7 %

Previous

-1.3 %

May 29 23:30 UTC 45994599m

JPJobs/Applicants Ratio

Actual

Forecast

1.46 %

Previous

1.45 %

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.