A Skoda official says the car brand will have to close a plant in the Czech Republic and scrap several models, including the Fabia, if Euro 7 pollution standards are adopted in the strictest version proposed. Several auto industry executives said cars could become more expensive if the current version of the rules is maintained.

Euro 7 rules are due to come into force on July 1, 2025 for cars and vans, and the European Commission says the rules will reduce polluting emissions and keep the vehicles affordable for consumers.

Several car industry executives have said in recent months that it will no longer be economically viable to produce small petrol or diesel cars such as the Polo or Fabia from 2025 if the strictest Euro 7 standards are introduced.

Martin Jan, Skoda’s director of marketing and sales, said that if today’s tough offer is accepted, the company will have to close the Czech plant that makes the Fabia, Scala and Kamiq models. The factory in Mlada Boleslav employs 3,000 people.

On March 10, the head of Daimler Trucks, Martin Daum, said that the current proposal would mean billions in additional costs for the car industry.

In November 2022, Volkswagen boss Thomas Schaefer said models like the Polo may not be produced after 2025, as Euro 7 regulations could add €5,000 to the car’s cost.

Several carmakers have strongly criticized the proposals linked to the Euro 7 rules and do not believe that car prices will rise by only 300 euros on average, the amount put forward by the EU. Many important people in the automotive industry believe that there is no point in introducing Euro-7 standards, when a lot is invested in electrification anyway. The head of Stellantis, Carlos Tavares, called Euro-7 “a deviation from the great goal of electrification.”

A group of eight EU countries, including Romania, recently met to try to ease Euro 7 car emissions limits.

The legislative proposal regarding the Euro-7 norms, on which EU countries and MEPs will begin negotiations this year, envisages strengthening the limits of pollutant emissions harmful to health, in particular nitrogen oxides.

The EU says the health benefits will far outweigh the costs. But those countries oppose the proposed rules, which they say are burdensome for the industry. Most of them have large manufacturing sectors.

The Czech Republic proposed a four-year period for the rule to take effect, along with some technical changes to give the industry time to prepare.

Sources: Reuters, Automotive News

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