Volvo has announced on Sept. 19 that they plan on only selling fully electric cars by 2030 and by aim to be a climate neutral company by 2040.

To emphasize this plan, Volvo announced at Climate Week NYC the end of production to all diesel-powered Volvo car models by early 2024. In a few months from now, the last diesel-powered Volvo car will have been built, making Volvo Cars one of the first legacy car makers to take this step.

This decision follows a similar one they had made November 2022, where Volvo sold their stake in Aurobay, the joint venture company that harbored all of Volvo’s remaining combustion engine assets.

“Electric powertrains are our future, and superior to combustion engines: they generate less noise, less vibration, less servicing costs for our customers and zero tailpipe emissions,” said Jim Rowan, chief executive at Volvo in a recent news release. “We’re fully focused on creating a broad portfolio of premium, fully electric cars that deliver on everything our customers expect from a Volvo - and are a key part of our response to climate change.”

An Urgent Need for Action

“What the world needs now, at this critical time for our planet and humanity, is leadership,” said Rowan. “It is high time for industry and political leaders to be strong and decisive, and deliver meaningful policies and actions to fight climate change. We’re committed to doing our part and encourage our peers as well as political leaders around the globe to do theirs.”

Volvo’s Chief Sustainability Officer Anders Kärrberg will also be attending an event organized by the Accelerating to Zero (A2Z) Coalition at this year’s Climate Week NYC.

Launched at the COP27 climate summit, the A2Z Coalition provides a multi-stakeholder platform for signatories of the Glasgow Declaration on Zero Emission Vehicles.

The A2Z platform allows automotive industry companies to collaborate and coordinate actions with others towards the coalition’s collective target of ‘making 100% of global new car and van sales free of tailpipe emissions by 2040, and no later than 2035 in leading markets’. 

A Changing Outlook

This decision to completely phase out diesels by early 2024 illustrates how rapidly both the car industry and customer demand are changing in the face of the climate crisis.

Only four years ago, the diesel engine was the bread and butter for car makers in Europe. The majority of cars sold in Europe by Volvo only a few years ago were powered by a diesel engine, while electrified models were only just beginning to make their mark.

That trend has largely inverted itself since then, driven by changing market demand, tighter emission regulations as well as a focus on electrification.