Geely’s Volvo Cars will not develop any new diesel engines as the cost of reducing emissions of nitrogen oxide is becoming too expensive, according to chief executive Hakan Samuelsson.

European Union regulators have given Chinese manufacturer Geely the go-ahead to buy Sweden’s Volvo Cars.

Volvo has been bought from the Ford Motor Company by the Chinese car maker Geely in a deal worth more than €1.3bn.

China’s emerging car industry unveiled a collection of new vehicles today at Shanghai’s car show, from electric run-arounds to luxury saloons.