GENEVA – Volvo Cars CEO Frederik Arp says the auto maker is studying bringing diesel engines to North America but will not be a leader in doing so.

“We’re studying that,” Arp says here at a pre-Geneva auto show event. “We’re not going to build that market, because we quite frankly haven’t got the absolute size to build North America when it comes to diesels.”

But if diesel engine demand does take off in the U.S., Volvo will be ready, Arp pledges.

“We will be able to capitalize on it, because we have some excellent diesel engines,” he says.

Volvo offers diesels throughout its European lineup.

Meanwhile, Arp reports he meets with new Ford Motor Co. CEO Alan Mulally weekly and that Mulally recently visited the Swedish auto maker.

“He was visiting us a couple weeks ago and we went through the business with him,” Arp says. “He was very supportive in terms of developing the brand and developing the products going forward.”

Arp says no issues have arisen at Volvo due to Ford’s Way Forward restructuring program, in which 14,000 white-collar jobs are being eliminated at Ford in North America.

Mulally and Ford are committed to making Volvo one of the world’s top luxury brands, Arp says.