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VW’s Skoda to stop production at Czech plants for a week due to chip shortage By Reuters


© Reuters. FILE PHOTO – A Skoda Skoda logo can be seen on the wheel of a SkodaOctavia vehicle after an announcement of its annual results made in Mlada Boleslav, March 20, 2013. REUTERS/David W Cerny/File Photo

PRAGUE (Reuters) – Czech car maker Skoda Auto, part of the Volkswagen (DE:) group, will halt production at its domestic plants for a week at the end of September due to chip shortages, its union head said in a union newsletter on Thursday.

From delayed car deliveries to a supply shortfall in home appliances to costlier smartphones, businesses and consumers across the globe have been facing the brunt of an unprecedented shortage in semiconductor microchips.

Czech Republic: The auto industry, an important driver of the economy, has suffered a significant drop in production. Skoda is still waiting for chips to finish thousands of its cars.

Jaroslav Povik, head of Skoda’s union said in a newsletter that the cancelled shifts would be added to holidays scheduled for Sept. 27 and 28 to commemorate a state holiday.

He said, “This will allow us to shut down production for the whole week.” “The main reason is the continued shortage of parts, mostly chips.

Skoda was not immediately available for comment.

Skoda, one of three automakers in central Europe, is the other. The other two are South Korea’s Hyundai Motor Co and Japan’s Toyota Motor (NYSE:) Corp.

Toyota has also been forced to halt production at its Czech plant for periods in the past few months.

Although manufacturers had to deal with the global supply and transport issues caused by the COVID-19 epidemic, the Czech economy is now experiencing solid growth following a huge contraction in 2020.

The manufacturing sentiment is also strong but it’s not the same as earlier this year.

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