Volvo Backtracks On CEO's Statement To End Diesel

May 19, 2017 01:00 AM EDT | Rebecca Pearson

After suggesting it will end its diesel engine production, Volvo backtracked and clarified the statements CEO Hakan Samuelsson made in a German newspaper. Reports quoted the chief as saying his company would soon be ending its diesel program. Volvo, however, issued a new statement saying the report misinterpreted the company head's words.

In a correction published on Car Throttle, Samuelsson reiterated Volvo still needs its diesel engines for an undetermined number of years. In fact, the company recently launched "a brand new generation of petrol and diesel engines" and the decision to end diesel would be an option, as opposed to a plan, for now.

Samuelsson reacted to a report of his interview with Germany's Frankfurter Allgemeine Zeitung published Wednesday. The CEO apparently said, "From today's perspective we will no longer develop any new generation diesel engines," as per The Local.

Volvo introduced its diesel range in 2013 and it's projected to continue until 2023, as per Reuters. The company also acknowledged its production could eventually become more expensive as Volvo has to comply with anti-pollution standards and carbon dioxide emission limits the European Union (EU) set.

As the governing body tightens its rules on emission, Samuelsson predicted the price of cars with diesel engines could increase. The company also recognized the accelerating technology of hybrid and electric cars as becoming more viable for business and sustainability.

Meanwhile, Volvo also announced the market release of its first electric car in 2019. Business Insider reported the Swedish company tapped China's Geely for this production.

Volvo's electric car matches up to Tesla's Model S 100D in terms of function and features. It will carry a price tag ranging from $35,000 and $40,000, which is closer to the price of Tesla's Model 3. The latter will mass release its first batch by the year's end.

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