France's Renault scraps investment in new diesel engine

French carmaker Renault will not invest in developing a new engine to fit the last generation of diesel vehicles it will produce and will instead adapt its existing model, Chief Executive Luca de Meo told shareholders on Friday.

Auto groups are accelerating an overhaul away from diesel and into electric cars, encouraged by more stringent rules on pollution and emissions and growing consumer demand for greener vehicles.

Renault made its own motors and was long a provider of diesel engines for other companies too. Dropping this investment plan comes as the loss-making group looks to cut costs.