For example, Škoda Auto’s operating profit fell by a quarter in the first half of the year, and TPCA produced 40,000 fewer cars less than planned in the second quarter. The Hyundai plant in Nošovice did not comment on the current results. The reason for the poor condition of cars is not only reduced demand, but also interrupted production, which affected almost the entire automotive industry.
At the same time, the newly published numbers of car manufacturers also credibly reflect the performance of the rest of the manufacturing industry, says David Marek, the chief economist of Deloitte. “Škoda Auto is so large that it can be considered a representative case. If its results are so scary, we should not be surprised to see similar or even worse results for small and medium-sized companies, “said Marek.
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This is also evidenced by reports bubbling across industries. Revenues of the Unipetrol refining and petrochemical group, which is also one of the largest companies in the Czech Republic, are halved year-on-year. Operating profit even a third.
Coal companies, such as the state-owned OKD or Sokolovská uhelná, which have been generating billions in profits in recent years, are already reporting financial difficulties. The largest domestic steelworks, Liberty Ostrava, would like to receive a guarantee from the state for a loan of up to seven billion, although the state still provides guarantees for loans amounting to a maximum of two billion crowns.
The chief economist of Patria Finance, Jan Bureš, believes that industry is becoming the most affected sector. “It’s no longer hospitality or hospitality, but we are entering the second phase of the crisis. The biggest blow to global demand is the automotive industry or mechanical engineering. And it can be expected that the crisis will spill over into the construction industry over time, ”says Bureš.
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The Confederation of Industry and Transport therefore proposed ten proposals that should help companies with a restart. These include, for example, accelerated depreciation of investments.
“There is no doubt that some sectors, such as the coal industry, are in decline and we will not do anything about it, but at the same time, the pandemic has started or accelerated digitization and automation. Those who do not invest now do not have to survive, “says the president of the association Jaroslav Hanák.
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