The Volkswagen Polo is at risk of being axed due to stringent new European anti-pollution regulations that could make small cars too expensive, reports Autocar.
Speaking at this week's Los Angeles Auto Show, Volkswagen CEO Thomas Schäfer said the company is prepared to pull its small cars off sale rather than engineer them to meet expensive new Euro 7 emission rules, which could add as much as €5,000 (around R90,000) to the cost of a car.
“We had a very good plan, where we thought EU7 was an insurmountable hurdle [and therefore would be scrapped] that will accelerate electrification,” Schäfer said.
He said VW planned small electric vehicles (EVs) to be launched in 2025 to replace the combustion engine in small vehicles like the Polo, as cars become so expensive [with EU7], there is no point carrying on.
“Then two [or] three weeks ago, word got out that EU7 was coming through and it would be on a reasonable level. And we thought, OK, let's go, that might help us transition a little bit [by keeping models like the Polo on sale], it doesn't change the plans, but it helps financially because you can transition a little easier and reinvest at the same time everywhere.
“But last week, another message came through [confirming stricter EU7 guidelines will be implemented] and we're back to square one. It’s even worse ...”
In 2035, all cars and vans sold in the EU are to have zero CO2 emissions. However, in 2050, more than 20% of cars and vans and more than half of the heavier vehicles are expected to continue to emit pollutants from the tailpipe. Euro 7 rules will reduce all these emissions, the European Commission said.
“It makes no sense to go with very small cars beyond EU7. It will push the price up of the small cars by 3,000, 4,000 or 5,000 pounds or more, then all of a sudden a small vehicle becomes unaffordable,” said Schäfer.
It isn't known whether he was referring to the next-generation Polo or was considering an early end to production of the current Polo, which was planned to be around for the next four to five years.
The decision could have far-reaching implications for Volkswagen SA, which builds the Polo and the older-generation Polo Vivo at its Kariega plant in the Eastern Cape. The plant has been building the current Polo since 2018, using engines imported from Europe.
Schäfer said VW needs another two weeks to evaluate the impact of EU7 rules, but if they affect prices of petrol cars too heavily, the company won't invest in the fossil-fuel engines any more and will electrify as quickly as possible.
According to Autocar, Schäfer said that Volkswagen was planning to launch a small electric car that would cost less than €20,000 (R360,000) in Europe.
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VW Polo at risk of being scrapped due to strict new anti-pollution laws
VW boss Thomas Schäfer says Euro 7 emission rules could add as much as R90,000 to the cost of a small car
Image: Supplied
The Volkswagen Polo is at risk of being axed due to stringent new European anti-pollution regulations that could make small cars too expensive, reports Autocar.
Speaking at this week's Los Angeles Auto Show, Volkswagen CEO Thomas Schäfer said the company is prepared to pull its small cars off sale rather than engineer them to meet expensive new Euro 7 emission rules, which could add as much as €5,000 (around R90,000) to the cost of a car.
“We had a very good plan, where we thought EU7 was an insurmountable hurdle [and therefore would be scrapped] that will accelerate electrification,” Schäfer said.
He said VW planned small electric vehicles (EVs) to be launched in 2025 to replace the combustion engine in small vehicles like the Polo, as cars become so expensive [with EU7], there is no point carrying on.
“Then two [or] three weeks ago, word got out that EU7 was coming through and it would be on a reasonable level. And we thought, OK, let's go, that might help us transition a little bit [by keeping models like the Polo on sale], it doesn't change the plans, but it helps financially because you can transition a little easier and reinvest at the same time everywhere.
“But last week, another message came through [confirming stricter EU7 guidelines will be implemented] and we're back to square one. It’s even worse ...”
In 2035, all cars and vans sold in the EU are to have zero CO2 emissions. However, in 2050, more than 20% of cars and vans and more than half of the heavier vehicles are expected to continue to emit pollutants from the tailpipe. Euro 7 rules will reduce all these emissions, the European Commission said.
“It makes no sense to go with very small cars beyond EU7. It will push the price up of the small cars by 3,000, 4,000 or 5,000 pounds or more, then all of a sudden a small vehicle becomes unaffordable,” said Schäfer.
It isn't known whether he was referring to the next-generation Polo or was considering an early end to production of the current Polo, which was planned to be around for the next four to five years.
The decision could have far-reaching implications for Volkswagen SA, which builds the Polo and the older-generation Polo Vivo at its Kariega plant in the Eastern Cape. The plant has been building the current Polo since 2018, using engines imported from Europe.
Schäfer said VW needs another two weeks to evaluate the impact of EU7 rules, but if they affect prices of petrol cars too heavily, the company won't invest in the fossil-fuel engines any more and will electrify as quickly as possible.
According to Autocar, Schäfer said that Volkswagen was planning to launch a small electric car that would cost less than €20,000 (R360,000) in Europe.
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
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