Skoda reverses decision to renew small wagon, citing Euro 7 emissions rules

Skoda has said it will not replace its Fabia Combi small wagon as originally planned, citing the coming Euro 7 emissions regulations.

In 2020, Thomas Schaefer, who was Skoda’s CEO at the time and is now head of the Volkswagen brand, announced that Skoda would replace the Fabia wagon with a launch date of this year.

"This is very important to us because it underlines our commitment to offering affordable, practical mobility in the entry-level segments," Schaefer said.

However, the wagon plan has now been axed. “Meeting the demanding emissions targets with the upcoming Euro 7 legislation is associated with very high costs,“ a Skoda spokesperson told Automotive News Europe. “Following this decision, there will be no successor to the Fabia Combi.”

Skoda stopped building the outgoing Fabia Combi in November last year, removing the last small wagon still on sale in Europe.

The niche segment in the past has been contested by Skoda as well as Renault with the Clio and Peugeot with the 207. Skoda sold 3,013 Fabia Combis through the end of March, down 49 percent on the year before, as dealers cleared the last of their stock.

Automakers have increasingly shifted their focus away from small hatchbacks and wagons to SUVs in recent years as they looked to increase margins on a segment that is vulnerable to price rises due to both increased legislation and higher raw material costs.

Skoda launched the current fourth-generation of the Fabia hatchback  in 2021, switching it to the VW Group’s MQB-A0 platform for the first time. The new version is 110 mm longer than its predecessor at 4108 mm, creating extra room for passengers.

Skoda CEO Klaus Zellmer warned in April that Euro 7 emissions regulations as currently proposed would mean serious cost hikes for the Fabia. “We want to respect the climate, but if the current draft becomes reality by 2025 we would have to put technology in the car that is either not developed yet or is so expensive that a 15,000-euro car would become an 18,000-20,000-euro car in Europe.”

The regulations would go into effect in July 2025, as currently planned. They govern the release of exhaust gases such as nitrogen oxide as well as fine particulates, which have been blamed for tens of thousands of deaths. They also will regulate emissions of particles from brake pads and tires.

Automakers have said they are a costly distraction for the push to electrification, because they require retrofitting and retesting of combustion powertrains.