Volvo Car AB bid adieu to its diesel legacy with the launch of its final diesel-powered vehicle, the XC90 SUV, marking a pivotal moment in the company’s journey towards an all-electric future by 2030.
The symbolic end to an era unfolded as the sleek XC90 rolled off the production line at Volvo’s Torsland plant in Sweden on Tuesday night. This strategic move comes amidst a backdrop of dwindling global demand for battery-powered cars, although Volvo remains committed to offering gasoline engine models alongside its electric lineup.
Eric Severinson, Volvo Car’s head of new cars and operational strategy, expressed confidence in the brand’s transition, stating, “We are confident that even without diesel, we have very good offers for customers.”
While Volvo Car charts its electric course, other automakers tread cautiously, refraining from concrete timelines on phasing out internal combustion engines. Mercedes-Benz Group AG recently revised its sales forecast, signaling a slower adoption of electric vehicles (EVs). Similarly, Audi announced cutbacks in its EV production plans late last year.
Volvo Car’s commitment to electrification dates back to 2017 when it became the first major automaker to pledge a departure from fossil fuel-powered vehicles. Since then, the company has introduced a range of hybrid and all-electric models. Notably, diesel’s prominence in Europe has waned over the years, dropping from around 50% of new sales in 2013 to a mere 14% in the past year.
The XC90, a cornerstone of Volvo’s resurgence since 2014, will be honored with a place in the Volvo Museum in Gothenburg. The SUV’s electric counterpart, the EX90, underscores Volvo’s dedication to sustainable mobility solutions.
Diesel, once touted as a cleaner alternative to gasoline, faced a severe blow to its reputation following the Volkswagen emissions scandal in 2015. Meanwhile, European electric car manufacturers grapple with subsidy reductions and fierce competition from Tesla Inc. and Chinese brands. To navigate this landscape, Volvo Car is streamlining operations and divesting from Polestar, an electric-car subsidiary, to prioritize long-term growth in the EV market.
Severinson emphasized Volvo’s unwavering support for its diesel customers while doubling down on its EV commitment, asserting, “We believe our customers see the transition to green mobility as much as we do.”
As the automotive industry pivots towards sustainability, Volvo’s decisive move signals a paradigm shift towards a greener future, where electric vehicles reign supreme on the roads of tomorrow.
Source https://www.bloomberg.com/news/articles/2024-03-27/volvo-says-diesel-is-history-with-last-xc90-suv-headed-to-museum