Skoda might be forced to discontinue the Fabia in 2025, four years after the debut of the current generation, when the Euro 7 emission regulations are scheduled to come into force since the required modifications would make it unsustainably more expensive.
Speaking to Autocar, Skoda CEO, Klaus Zellmer admitted that with the Euro 7 in place, it won’t be possible for the Fabia to stay affordable. Even after the recent increases in car prices, the Skoda Fabia starts from €18,300 ($20,206) in Germany and from £18,600 ($23,177) in the UK, remaining one of the most affordable models in the segment. Zellmer believes that the new regulations will push prices even higher, making the Fabia an unfeasible proposal for buyers.
Read: Skoda Previews 6 Upcoming EVs, Including Entry-Level EV For 2025
While the European Commission estimates the extra cost to be only €304 ($335) per vehicle, VW Group thinks otherwise, Last year, Volkswagen CEO, Thomas Schäfer, said that the price of ICE-powered models that need to comply with the Euro 7 regulations could increase by as much as €5,000 ($5,520). This number represents more than 25% of a supermini’s entry price, effectively making them obsolete.
It doesn’t make sense for Skoda to keep selling the Fabia if it becomes more expensive than the upcoming fully electric small SUV with a starting price of around €25,000 ($27,591). The same applies to the VW Polo which faces the threat of the similarly-sized fully electric ID.2 that is expected in 2025.
The Euro 7 regulations will come into force from July 2025 for all new cars and LCVs. They require 35% lower NOx emissions and 13% lower tailpipe particulates compared to the current Euro 6 regulations, plus the addition of electrically heated e-catalysts and an onboard diagnostic system that will continuously monitor emissions.
Automakers are fighting to postpone this change which would have a toll on the smaller and more affordable segments. In that context, Zellmer said: “We want to respect the climate, 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 €15k car will be between €18k and €20k”. His argument is that if new cars become so pricey, it will be difficult to sell them as people might prefer to keep their older and more polluting vehicles for longer. The Skoda CEO added: “We need to sit together and we need to have a good plan, that is good for everybody: for consumers and for the climate”.
ICE-powered superminis are quickly becoming a dying breed in Europe, in favor of the more profitable and equally popular B-SUVs. The Ford Fiesta and Kia Rio have already been discontinued, with the VW Group’s models in the segment facing an uncertain future. On the other hand, Stellantis’ B-Segment offerings (Peugeot 208, Opel Corsa, Citroen C3, and Lancia Ypsilon) appear to still have a future, as with the recently facelifted Renault Clio and the ultra-efficient Toyota Yaris.
