Volvo just made its last car with a diesel engine, marking a big milestone in the Swedish company's march toward electric-only sales. 

The vehicle, an XC90 SUV, rolled off the assembly line in Torslanda, Sweden and is headed to a Volvo museum in Gothenburg, Sweden, where the automaker is headquartered. 

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Volvo says goodbye to diesel

Volvo plans to pivot to electric-only sales by 2030. Look out for it to release two brand-new electric models in the U.S. this year: the EX30 compact SUV and the larger EX90. 

Several of the world's automakers have pared back their electric ambitions in recent months, citing a slowdown in EV demand. Mercedes-Benz, for example, now aims for 50% of its sales to be electric or hybrid by 2030, five years later than it initially planned. Despite the doom and gloom hanging over the EV market over the last several months, the auto industry's zero-emission transition is chugging along when you take a longer view.

Milestones like Volvo's show exactly where things are heading thanks to tightening environmental regulations globally and growing consumer interest in EVs. Diesel cars took off in Europe, promising lower greenhouse gas emissions than ones powered by gasoline. However, diesel sales have steadily declined in recent years as EVs gained traction.

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The majority of cars Volvo sold in Europe in 2019 ran on diesel, the automaker said. Now, hybrid and fully electric cars account for most of its European sales. The company's EV sales grew by 70% last year. Volvo aims to be an electric-only carmaker by 2030 and become net-zero by 2040. 

Volvo's last diesel-engined vehicle, a blue, XC90 SUV, is seen leaving the production line at its Sweden factory.

Those plans are taking shape in the U.S. with the help of two exciting new EVs coming this year. The EX30 is a compact SUV starting at roughly $35,000, cheaper than most EVs. The EX90 will provide an electric alternative to Volvo's best-selling XC90 midsize SUV. 

Similarly, Dodge recently said goodbye to its bread-and-butter V8s, turning its focus to electric cars and more fuel-efficient six-cylinder engines. 

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