The latest generation of diesel engines by Volvo could be its last, as the cost of reducing emissions of nitrogen oxide is becoming too expensive. This was revealed by Volvo CEO Hakan Samuelsson, when interviewed by Frankfurter Allgemeine Zeitung, as reported by Autonews.

However, the company will continue working on its current Drive-E range of diesel engines in order to meet future emissions standards, with production likely to end by 2023. This is partly due to the popularity of diesel vehicles in Europe, accounting for over 50% of all new registrations there.

Another reason is introduction of new regulations, whereby the average carbon dioxide emissions limit for European carmakers’ fleets will need to fall from 130 grams per kilometer to 95 g/km in 2021. The costs of making engines compliant with ever higher anti-pollution standards isn’t worth it for Volvo.

Instead, the Swedish carmaker will focus on electrification for its future models, and already has plans to introduce its first fully electric car in 2019. The battery electric vehicle (BEV) will be based on the Compact Modular Architecture (CMA), which also underpins the brand’s upcoming small cars like the XC40 and all-new S40.

Other forms of electrification include the company’s various hybrid powertrains, led by the T8 Twin Engine plug-in hybrid in the XC90 and XC60. Also revealed is a new T5 Twin Engine for use on CMA-underpinned models.