The move is being considered as the EU prepares to introduce tougher emission rules
The French car manufacturer, Renault, may phase out all diesel versions of its car range by 2020 according to Reuters reports overnight.
A senior Renault executive, Thierry Bollore, is quoted as saying tougher EU emissions and testing standards due to come into force over the next four years would make diesel engines uneconomic to manufacture. Renault also owns a 40% stake in Nissan.
More than 60% of Renault cars sold in Europe and 70% of all cars sold in Ireland last year were diesel engines.
The EU's reforms follow Volkswagen's emission cheating scandal. Renault is subjected to an investigation in France - it is suspected that emission figures published by the company may have been fraudulent.
Volkswagen's chief executive, Matthias Mueller has also indicated that the company is now asking "whether it still makes sense to invest a lot of money in further developing diesel."
Meanwhile, in the latest twist to the Volkswagen diesel emissions controversy, the car company’s legal team walked out of the District Court in Mayo yesterday afternoon claiming that the court has no jurisdiction to hear a case brought by a Roscommon nurse and VW car owner, Eithne Higgins, against the German firm.