In a potential blow to its workforce, Volkswagen’s Skoda brand could axe up to 3,000 jobs if the proposed Euro 7 regulations are implemented in their current form, a company spokesman confirmed.
The proposed emissions standards, slated to come into effect in 2025, are intended to cut harmful pollutants from vehicle exhausts. However, the stringent requirements – which include limits on nitrogen oxides (NOx) and particulate matter – could place an immense burden on the Skoda brand.
Due to the difficult nature of meeting the stringent criteria, the manufacturer is considering a range of cost-cutting measures to reduce the financial implications of the regulations.
The spokesman revealed that the company is currently in the process of preparing for the Euro 7 regulations, and is exploring several strategies to ensure the economic viability of their operations. This includes the potential for job losses, which could affect up to 3,000 employees.
In addition to the potential job losses, the Euro 7 regulations could also result in higher manufacturing costs for the company. As such, Skoda is also looking at other solutions to meet the standards, such as the use of advanced filtration systems and alternative fuels.
The spokesman declined to comment on the potential job losses, pointing out that the company is still in the process of evaluating the regulations. However, he did note that the company is committed to ensuring the long-term viability of its operations in the face of the new standards.
“We are committed to finding a solution that meets the strict regulations while also ensuring the sustainability of our business,” he said. “We will continue to evaluate the potential implications of the Euro 7 regulations, and we are confident that we will be able to identify a suitable solution.”