Porsche has said that it will stop production of diesel cars, focusing instead on petrol, electric and hybrid models.
The German carmaker made the decision following the 2015 scandal in which the group’s parent company Volkswagen (ETR: VOW) admitted to cheating on the emissions tests for diesel engines.
Oliver Blume, Porsche’s chief executive, said the company was “not demonising diesel”.
“It is and will remain an important propulsion technology. We as a sports car manufacturer, however, for whom diesel has always played a secondary role, have come to the conclusion that we would like our future to be diesel-free.”
“Petrol engines are well suited for sporty driving. Existing diesel car customers would continue to be served. Nevertheless, Porsche’s image has suffered,” he said. “The diesel crisis caused us a lot of trouble.”
Volkswagen was fined €1 billion (£900 million) earlier this year. The group set aside $30 billion (£23 billion) to settle fines, compensation and buy back cars.
Sales of electric cars have surged in the UK and one in every 12 new cars purchased in the UK is electric.
Daimler-owned Mercedes (ETR: DAI) has unveiled its first fully-electric vehicle. Audi (ETR: NSU) and Jaguar have also lined-up to produce electric models.
Shares in Volkswagen are down 1.96 percent at 150,10 (0931GMT).