Skoda Fabia facing axe over Euro 7 emissions

The Skoda Fabia is likely to be killed off with the impending Euro 7 emissions regulations due in 2025 because the modifications required will add more than €5000 ($A8300) to every vehicle, according to the Czech car-maker.

With prices currently kicking off at just €15,000 ($A25,000) in some markets, Skoda chief Klaus Zellmer said raising prices would instantly destroy demand.

Speaking to Autocar, Zellmer said: “Is that still a feasible proposal for consumers? I don’t think so.”

That suggests the Volkswagen-owned brand would be forced to pull the small hatch from sale in all markets, including Australia.

Late last year, Volkswagen brand boss Thomas Schäfer said a similar fate also awaits the closely related Volkswagen Polo, unless dramatic revisions were introduced to the legislation that comes into force from July 2025.

Euro 7 demands that NOx emissions for new cars and vans be reduced by 35 per cent, and tailpipe particulates slashed by 13 per cent, compared to current Euro 6 requirements.

According to engineers, some of the exhaust gas aftertreatment measures required to pass the new legislation include heated e-catalysts – required on start-up – as well as far more sophisticated monitoring tech to constantly manage key pollutants that exit the tailpipes.

If the emissions spike, an engine management light is required to illuminate on the dashboard, informing the driver.

Despite claims that meeting the new targets will cost the Volkswagen Group €5000 ($A8300) per car, the European Commission, which drafted the new targets, estimates the cost of making a new car or van compliant will be just €304 ($A505) per vehicle.

That figure, Zellmer believes, is not representative of the technology needed.

We want to respect the climate,” he said. “But if the current draft comes to reality by 2025, we would have to have technology in the cars that is either not developed yet, or is so expensive that the €15,000 ($A25,000) car will be between €18,000 ($A30,000) and €20,000 ($A33,300).”

Even if Skoda saves the Fabia and it remains on sale, Zellmer warned that an unwanted side effect of less affordable small cars is that current owners will be keep their older, more polluting car longer, negating the benefits of the new Euro 7 regs.

Instead, the Skoda CEO said it was time to tweak Euro 7.

“We need to sit together and we need to have a good plan that is good for everybody: for consumers and for the climate,” he said.

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