Gothenburg, Sweden-- A competitive diesel engine is nothing less than a matter of survival in Europe. In 2002, 40 per cent of all cars sold in Europe will be diesel cars. This figure is forecast to increase to 46 per cent by 2005. <BR>There is considerable demand in all segments, although it is found primarily in those segments where the Volvo XC90, S80, V70, XC70 and S60 compete. <BR>“The negative perception of the diesel engine’s inadequate power and poor comfort is a thing of the past. Nowadays even the most discerning customers want diesels. In our position in the premium segment, this provides us with an exciting and tough challenge,” says Hans-Olov Olsson, President and CEO of Volvo Car Corporation.<P>The Largest Markets<BR>Germany is the largest diesel market for Volvo Cars, with sales of 14,000 large diesel-engine cars expected there in 2002. Germany is followed by the UK with 8,500, Italy with 8,400 cars, Belgium with 6,000, Spain with 5,400 and France with 5,200 cars. <BR>In France 92 per cent of all large Volvos sold will be diesel cars, while Belgium and Italy will exceed the 80 per cent mark. Austria has a 77 per cent diesel share, followed by Portugal with 73 per cent.