Volvo Plans to Stop Developing New Diesel Engines

May 19, 2017—Volvo's latest generation of diesel engines could be its last as the cost of reducing emissions of nitrogen oxide is becoming too much, chief executive Hakan Samuelsson said on Wednesday, according to Reuters.

"From today's perspective, we will not develop any more new generation diesel engines," Samuelsson said in an interview.

However, a Volvo Cars spokesman said on Wednesday Samuelsson had been discussing options rather than a firm plan to stop the further development of diesel engines.

Samuelsson later said in a statement emailed to Reuters he believed diesel would still play a crucial role in the next few years in helping the company meet targets to reduce emissions of carbon dioxide, being more fuel-efficient than petrol engines.

"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," he said.

In the FAZ interview Samuelsson said Volvo would continue improving the current range, first introduced in 2013, to meet future emissions standards, with production likely to go on until about 2023.