“According to the current scenario and the expected availability of critical components, we see a year-round risk of more than 250,000 non-manufactured cars by the end of this year,” Škoda Auto spokeswoman Kamila Biddle told Práva.
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In 2018 and 2019, the production of Škoda cars was over 1.2 million, last year 941 thousand drove off the lines, this year it was planned to approach one million again. However, production costs, the manufacturer largely cancels shifts, admitting that the shutdown could last until the end of the year.
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At home for a lower salary
A mandatory corporate inventory of assets was planned for Friday, but other shifts were virtually canceled this week, with the exception of the Kvasiny plant. At the same time, the interruption of production, which Škoda Auto announced a week ago, was not to begin until next Monday.
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Trade unionists believe that the situation may change depending on the current supply of missing chips. However, according to the company’s management, there are still few of them. “We acquire them continuously, unfortunately their quantity is not sufficient for our current needs,” Biddle confirmed to Práva.
A significant reduction in production at Škoda Auto also has an impact on a number of other companies that are somehow connected to the automotive industry.
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As Právo has already informed, this applies to dozens of supplier and subcontracting companies producing various components, from plastic parts and molds to seat covers. Some already leave their employees at home for a reduced salary. The law has already written about the employees of the Austerlitz company Kasko, which produces plastic parts, who are at 60 percent of salary.
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The crisis will affect tens of thousands of people – Škoda Auto alone employs almost 40,000 of them. The situation will therefore be resolved on Monday by the tripartite and the government, which is preparing to re-expand the Antivirus wage compensation program. The state could contribute 60 percent to companies’ wages so that they do not lay off workers at a time when there is a shortage of workers in the market.
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The interruption of production also has a negative impact on freight carriers, which also transport newly manufactured cars.
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Sales fell
“There are special semi-trailers for them that cannot be used for other transports,” Martin Felix, spokesman for the Česmad Bohemia carrier association, told Práva. One week ago, Škoda Auto had 45,000 unfinished cars on the parking lots around the country.
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Virtually all manufacturers, including Toyota Motor Manufacturing in Cologne, are struggling with semiconductor outages. Yesterday, the Japanese carmaker announced a reduction in planned global production for November by up to 15 percent, which is about 150,000 cars.
Across the EU, passenger car sales fell 23 percent year-on-year to 718,598 in September, the European Automobile Manufacturers Association added yesterday. This is the least since September 1995. In the Czech Republic, the decline was more modest, by 16.2 percent to 14,165 cars.
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