Volkswagen diesel cheat was known seven years ago

For the first time since the "dieselgate" scandal broke, an executive has acknowledged the industry knew more about VW's indiscretion than it has let on so far.

A senior executive at Swedish car maker Volvo has claimed Volkswagen's diesel emissions cheat was an "open secret" in the automotive industry seven years ago -- more than five years before the scandal was exposed.

But no-one notified authorities because the existence of the software that side-stepped regulations could not be proven at the time.

It is the first time since the "dieselgate" scandal broke in September 2015 that an executive at another car maker has acknowledged the industry knew more about Volkswagen's indiscretion than it has let on so far.

Kent Falck, a 29-year veteran of Volvo responsible for the development of future vehicles, said diesel experts at rival car brands were suspicious about how Volkswagen could meet strict US emissions standards, but they themselves could not.

"We have the same suppliers, we have Bosch, we have Denso, we are working with the same partners, so we know this technology doesn't exist," Mr Falck told a small group of Australian media at the launch of a new Volvo sedan in Spain on Wednesday. "I have known that for seven years," he said.

No matter how hard Volvo tried to match the US diesel emissions standards using the same parts suppliers as Volkswagen, it could not do it.

When asked by News Corp Australia if Volkswagen's diesel emissions cheat was an "open secret" in the car industry, Mr Falck said "yes".

The executive said no matter how hard Volvo tried to match the US diesel emissions standards using the same parts suppliers as Volkswagen, it could not do it.

"We sat in a room and reviewed all the facts, figures, whatever we have, with the specialists," said Mr Falck. "(But) we can't manage it, how are the others doing it? We don't know."

"From our perspective with our knowledge, with our experience, we can just take care of ourselves, I said (to senior Volvo management) 'we can't do it, we can't introduce the car'."

It was for this reason Volvo -- and many other brands -- are yet to introduce a diesel car in the US, he said.

Mr Falck said initially it was thought Volkswagen might have had access to some unknown technology that was exclusive to the German car maker.

"There is always intellectual properties in the world... there might be something out there in the technology... that we are not allowed to buy because it's owned by a supplier. We were wondering how (VW met strict US emissions targets) that's for sure."

I think three (out of) four cars will be electric (or hybrid) in the future.

The revelation came as Volvo said it believes it has developed its last generation of petrol and diesel engines.

They are expected to continue another 10 years or so before hybrid and electric vehicles dominate the market.

Volvo plans to have 1 million hybrid and electric cars on the roads globally by 2025.

Mr Falck said petrol and diesel cars will still be available after 2025 because "society has a need" to provide transport to motorists who need to travel beyond the limits of electric cars -- but they will most likely be rented for special occasions.

"If we as human beings and adults shall take care of the environment in some way, there is no future in (petrol or diesel engines)," said Mr Falck.

But he said there would still be a small number of petrol or diesel powered cars available for specific use.

"If you have a very, very long distance ... 500km between gas stations, there must be something that can give you a very long range," said Mr Falck.

"But I think three (out of) four cars will be electric (or hybrid) in the future. All of us are living quite close to the city. And if you would like to go on a long drive... you may change cars for the weekend."

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