Among other things, the entire parent company of the Škoda Volkswagen, which returned to profit in the third quarter due to demand for luxury cars in China, will face this. Operating profit was a third lower than last year, amounting to 74.4 billion crowns.
While in the spring, Škoda, Hyundai from Nošovice and TPCA from Cologne started several weeks of production shutdowns, now – at least for now – they continue to produce. “Although this is happening, demand is being hit very hard. This will apply next year as well. Companies will not renew their company car fleets, households will save money, ”estimates David Marek, chief economist at Deloitte.
Companies and individuals will postpone the acquisition of new cars, which will lead to a further deterioration of the results not only of Škoda. According to Marek, the carmaker will continue to struggle with its reluctance to spend both on the domestic market and on its most important market, the European market.
–
–
“The drop in demand is a huge threat. Big players among automakers will have to save, but they can do it. The most endangered are small and medium-sized companies, suppliers of large ones, “warns Radek Špicar, vice-president of the Confederation of Industry and Transport.
Car stores are currently closed in the Czech Republic, which may have far-reaching economic consequences, said Bohdan Wojnar, president of the Association of the Automotive Industry. “Online sales do not compensate. Consumer demand and mood is now much worse than in the first wave, “adds Špicar.
Domestic companies in the automotive industry are already responding to economic pressure: they are getting rid of agency employees, they are sending some workers early into retirement. If the crisis lasted for several more weeks to months, it would be the turn of the regular employees. “The time is approaching,” says Spicar.
–
–
At the same time, it is far from the coronavirus crisis that threatens domestic companies. The automotive industry has to deal with the investment-intensive tightening of the European emission reduction plan. He will probably also be hit by “hard brexit”, ie the departure of Great Britain from the European Union without the conclusion of a trade agreement.
According to experts, it would have a very dramatic impact on the domestic automotive industry. According to Špicar, the risk of Europe’s trade war with the USA is also still relevant, which is why the result of the presidential election will be important for the Czech Republic.
– .
