Volvo Car AB has bid farewell to an era with the launch of its final diesel-powered vehicle, marking a decisive step toward its commitment to producing only electric cars by 2030. The symbolic closure occurred as the latest XC90 sport utility vehicle (SUV) rolled off the assembly line at the company’s plant in Torsland, Sweden, on Tuesday night.
“We are confident that even without diesel, we have very good offers for customers,” remarked Eric Severinson, Volvo Car’s head of new cars and operational strategy.
This move by Volvo comes at a time when global demand for electric vehicles (EVs) is facing a slowdown, despite their touted environmental benefits. Several other automakers have hesitated to set concrete timelines for phasing out internal combustion engines, with some even scaling back their EV plans in response to market dynamics. Mercedes-Benz Group AG recently revised its sales forecast, expecting battery-powered cars to take longer to dominate the market than initially projected.
Since 2017, Volvo Car has been steadfast in its commitment to transitioning away from fossil fuel-dependent vehicles, introducing a range of hybrid and all-electric models. This latest decision reflects a broader industry trend as diesel sales continue to dwindle across key markets. In Europe, where diesel cars once accounted for half of new sales, their market share has dwindled to just 14%.
The XC90 has been pivotal in Volvo’s resurgence, serving as a flagship model since its unveiling in 2014. It represents Volvo’s dedication to innovation, being the first car built on a new platform developed under Geely’s leadership. As Volvo Car looks to the future, the focus remains on electric mobility, with the EX90 standing as the electrified counterpart to the outgoing XC90.
Diesel, once hailed as a cleaner alternative to gasoline, has fallen out of favor following the Volkswagen emissions scandal in 2015. In contrast, the electric car market faces its own challenges, including subsidy cuts and heightened competition from Tesla Inc. and emerging Chinese brands. To navigate these challenges, Volvo Car is streamlining operations and redirecting resources, including withdrawing funding from Polestar, its electric car subsidiary.
Severinson emphasized Volvo Car’s unwavering commitment to supporting its diesel customers while prioritizing the growth potential of EVs. “We believe our customers see the transition to green mobility as much as we do,” he stated.
As the last diesel-powered XC90 finds its place in history, Volvo Car looks ahead to a future driven by electrification and sustainable mobility solutions.
Source: [Bloomberg](https://www.bloomberg.com/news/articles/2024-03-27/volvo-says-diesel-is-history-with-last-xc90-suv-headed-to-museum)
