Renault Sours on Diesels

Renault SA, formerly bullish on the outlook for diesels in Europe, now says most of its models in that market soon will be gasoline-powered instead, sources tell Reuters.

They say Thierry Bollore, the company’s chief competitive officer, told an internal meet in July that his outlook has dimmed dramatically since the beginning of the year. He blames tightening emission standards and Volkswagen’s year-old diesel emission cheating scandal.

Bollore told the group that the two trends will raise costs and eventually price diesels out of much of the market, according to Reuters' sources. The news service points out the rising cost of diesel regulatory compliance already has removed the engines from A-segment minicars.

Analysts note that the falling cost and improved performance of electric powertrains make electrification an increasingly attractive alternative to diesel power.