Volvo to stop de­vel­op­ing new diesel en­gines

New Straits Times - - Busi­ness -

BER­LIN: Swedish car­maker Volvo will not de­velop any new diesel en­gines as the cost of re­duc­ing emis­sions of ni­tro­gen ox­ide is be­com­ing too ex­pen­sive, said chief ex­ec­u­tive Hakan Sa­muels­son yes­ter­day.

“From to­day’s per­spec­tive, we will not de­velop any more new­gen­er­a­tion diesel en­gines,” Sa­muels­son told Ger­man’s Frank­furter All­ge­meine Zeitung in an in­ter­view.

Sa­muels­son said Volvo would keep de­vel­op­ing cur­rent dieselpow­ered models in­tro­duced in 2013 to meet fu­ture emis­sions stan­dards, but then the costs of keep­ing them com­pli­ant with higher anti-pol­lu­tion stan­dards would no longer be worth it, with the cur­rent gen­er­a­tion likely to be pro­duced un­til about 2023.

In­stead, Volvo will in­vest in the elec­tric and hy­brid cars, with its first pure elec­tric model due in 2019.

“We have to recog­nise that Tesla has man­aged to of­fer such a car for which peo­ple are lin­ing up.

“In this area, there should also be space for us, with high qual­ity and at­trac­tive de­sign,” said the firm’s chief ex­ec­u­tive.

BLOOMBERG PIC

Volvo Cars says fo­cus on hy­brid, pure elec­tric cars as the cost of cut­ting ni­tro­gen ox­ide emis­sions is be­com­ing too costly.

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