Skoda considers axing Fabia due to Euro 7 regulations

Skoda's CEO Klaus Zellmer revealed in an interview with Autocar that the Fabia hatchback may face the axe as updating it to meet Euro 7 emissions regulations would make it too expensive. This decision comes as the Volkswagen Group prepares for a future without ICE-powered small cars, as the Polo and Audi A1 face a similar fate.

Much like its predecessors, the current-generation Skoda Fabia was supposed to spawn a more practical wagon. The long-roof subcompact model was officially announced in November 2020 by then-CEO Thomas Schäfer, only to be axed about a year later. The Czech automaker took this decision to prepare in advance to meet stricter emissions regulations. Fast forward to April 2023, it would seem the regular Fabia hatchback is in danger as well.

Speaking with Autocar, Skoda's head honcho Klaus Zellmer admitted that updating the Fabia to meet Euro 7 regulations would render the supermini too expensive and people wouldn't buy it anymore. If the draft is approved in its final form, "it will not be possible" to maintain the B-segment hatchback at an affordable price. If this sounds familiar, it's because Volkswagen said exactly the same thing about the mechanically related Polo.

Lest we forget Audi has already revealed it will discontinue the A1 at the end of this generation, so it seems the VW Group is preparing for a not-too-distant future without an ICE-powered small car. SEAT hasn't said anything about what it intends to do with the Ibiza, but we wouldn't necessarily count on a bright future for the Spanish supermini, especially since the newly founded Cupra marque is being favored to the detriment of SEAT.

VW said it would have to add €5,000 to the Polo's price tag after tweaking the small car to meet Euro 7 regulations. It should be the same story for the Fabia and Ibiza since all three cars ride on the same MQB-A0 platform, which also underpins the larger Skoda Scala. Meanwhile, the European Commission mentions it would cost automakers just €304, so clearly someone's math is way off.

The Fabia, Polo, and Ibiza will be facing internal competition from the small EVs that the VW Group is planning to release in 2025 with a starting price in Europe of €25,000. These have already been previewed by the Skoda Small, VW ID2.all, and Cupra UrbanRebel. Before that happens, the gasoline-fueled trio will not  have to worry about the Ford Fiesta anymore as the Blue Oval is discontinuing its once-beloved hatchback this year.

Source: Autocar