According to a board member of Volkswagen-owned Skoda, the company will need to cut 3,000 jobs and slash some models if the European Union implements the “Euro 7” emissions scheme in its current form.
The proposed Euro 7 legislation, which is to be negotiated this year, will tighten limits on the vehicles’ emission of health-harming pollutants.
According to EU lawmakers, the health benefits of this legislation would far overshadow the costs. Yet, some auto manufacturers have warned the measure will impose extremely expensive development costs.
“If (Euro 7) is approved in this shape, it would mean for Skoda Auto to close one plant, because we would stop producing the smaller models – Fabia, Scala, Kamiq – that means 3,000 jobs (would be) hit at least,” Martin Jahn, a board member of Skoda, was quoted as saying by Reuters.
He also said that over 10,000 jobs would be placed at risk in the Czech Republic, including at the auto maker’s suppliers.
The shares of Volkswagen AG (VOWG) were last losing 1.24% (EUR 1.90) on Monday to trade at EUR 150.95 on Xetra, while extending losses from the previous ten sessions.
The auto maker’s total market cap now stands at EUR 72.441 billion.
The shares of Volkswagen AG went down 42.86% in 2022, compared with an 8.79% loss for the DAX Automobile (CXPAX) Index.
The shares have risen 2.23% so far this year.