Volvo CEO Jim Rowan Waves Diesel Farewell, Shifts Focus To EVs Amid Share Value Plummet

In a recent turn of events, Volvo Cars VLVLY has made a decisive shift towards electric vehicles (EVs), announcing the end of production for all diesel car models by early 2024. This comes amid a sharp fall in the company’s share value.

What Happened: Volvo Cars confirmed on Wednesday the termination of its diesel-powered car model production, Automotive News reported. The last diesel Volvo car is expected to roll off the production line in a few months.

CEO Jim Rowan justified the decision, emphasizing that “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.”

This makes Volvo one of the initial traditional car manufacturers to leap.

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Adding to Volvo’s challenges, the company’s share value experienced a significant drop, hitting a record low following a massive share sale initiated by its parent company, Zhejiang Geely Holding Group.

Why It Matters: The comments arrived only days after the Swedish automobile giant experienced a significant drop in its share value following a massive share sale by its parent company, Zhejiang Geely Holding Group.

Just four years ago, in 2019, diesel engines powered the majority of cars sold by Volvo in Europe. Presently, a majority of Volvo’s sales in the continent are electrified cars. The company has also ceased allocating any part of its research and development budget to developing new internal combustion (IC) engines.

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