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Volkswagen May Discontinue Polo Over Upcoming Euro 7 Standards

2021 Volkswagen Polo 40 photos
Photo: Volkswagen
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Alfa Romeo chief executive officer Jean-Philippe Imparato has recently described the Italian automaker’s first plug-in hybrid powertrain as “not just another powertrain.” The 1.3-liter turbo plug-in hybrid is “an existential need,” obviously referring to the new Euro 7 regulations.
Previously billed as a de facto ban on the sale of new combustion-engined vehicles, Euro 7 has been watered down by the European Commission over increasing pressure from the automotive industry. Be that as it may, it still presents a huge challenge for the entirety of the automotive industry.

For starters, nitrous oxide emissions are limited to 60 milligrams per kilometer for both gasoline- and diesel-fueled automobiles. Pollutant levels will be measured for short trips as part of Euro 7’s more stringent testing procedures. Emission limits have been introduced for both tires and brakes, and Euro 7 regulations double the period over which a vehicle’s compliance is checked. Last but not least, both electric vehicles and plug-in hybrids will have the longevity of their high-voltage batteries assessed.

The European Commission expects Euro 7 regulations to add an average of €304 (make that $314 at current exchange rates) to the cost of a new car, which is a gross understatement according to the Volkswagen Group.

Big kahuna Thomas Schafer told Autocar.co.uk that "it makes no sense to go with very small cars beyond EU7,” which is why the fate of the Polo is currently unclear. The new regulations “will push the price up of the small cars by 3,000, 4,000 or 5,000 euros or more,” according to the chief exec.

If the expected impact of EU7 turns out to be true, Volkswagen won’t invest any more resources in the development of small combustion-engined vehicles. The big picture, however, remains unchanged. The Wolfsburg-based automaker has doubled down on electrification ever since the Dieselgate fiasco came about, and the plan is for the Volkswagen Group to overtake Tesla, Inc. on electric vehicle sales by the year 2025.

Given that demand for affordable new cars will continue to be high after Euro 7 comes into effect in 2025, the German automaker has acknowledged the need for budget-oriented EVs. Although VW has yet to find a solution to the increasing price of EV batteries, Schafer thinks that a brand-new electric vehicle priced below €20,000 euros ($20,670) is possible.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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