Euro 7 emissions rules could mean no more budget-friendly VWs and Skodas

Volkswagen and Skoda have warned sub-$45,000 Polo, Fabia, Scala and Kamiqs will be discontinued if looming strict Euro 7 emissions are mandated without revisions.

Volkswagen CEO Thomas Schäfer told Autocar that smaller petrol-engined vehicles, such as the iconic Polo city car, “literally makes it impossible” to keep alive.

Schäfer claims adding hybrid technology to entry-level models just to satisfy emissions standards is “prohibitively expensive” when bans will come into play next decade to force full electric vehicles.

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Skoda Scala Monte Carlo

Skoda’s sales and marketing head, Martin Jahn, echoed a similar sentiment in a televised debate (according to Automotive News Europe) that the Volkswagen Group-owned Czech brand would need to axe the Fabia light hatchback, Scala small car and Kamiq small SUV, close the factory, and cut at least 3000 jobs – if Euro 7 is implemented in the current state.

The proposed Euro 7 mandate will be enforced in Europe from July 1, 2025 for all new mass-produced cars, with flow-on effects on the global car industry.

It includes setting stricter exhaust emissions standards – focused on cutting nitrogen dioxide (NOx) by 35 per cent – tyre and brake emission limits, and ongoing assessment of lifetime emissions.

If Euro 7 is implemented as currently designed, Skoda would need to axe the Fabia light hatchback, Scala small car and Kamiq small SUV, close the factory, and cut at least 3000 jobs

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Skoda Kamiq Signature

Carmakers such as the Volkswagen Group and Stellantis (which owns Peugeot and Citroen among others) have labelled Euro 7 as ‘useless’ since the impending 2035 ban on selling new combustion engine vehicles makes it irrelevant – claiming it will force the demise of the traditional powerplant even sooner, from around 2026.

Seemingly in support of this position, transport ministers from the 27-member European Union countries, along with carmakers such as Volkswagen, are currently negotiating to tweak Euro 7.

It comes as Volkswagen revealed its ID.2 all electric city car concept, which promises to have an AU$40,000-equivalent starting price tag – matching a top-spec Polo, and rival Chinese brands such as the MG 4.

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Volkswagen ID.2all

The number of affordable and compact new cars are dwindling

The venerable Ford Fiesta was killed off entirely in 2022 in favour of in-demand SUVs and electric vehicles, the Kia Rio won’t live on soon in Australia, and the Suzuki Baleno, Mitsubishi Mirage and Hyundai Accent are all no longer.