Skoda is back in business!

Skoda is back in business!


Skoda announced the resumption of car assembly at factories in the Czech Republic. According to Reuters, production started on the night shift on October 31st, starting at 22:00. Before that, the company’s enterprises in the country, with the exception of one conveyor in Kvasiny, stood idle for two weeks. It was reported that the reason for the shutdown was a shortage of electronic components, due to which in 2021 the Czech Republic will produce 250 thousand less cars than planned, the local Association of the Automotive Industry calculated. This will cost the automotive sector, the backbone of the Czech economy, 200 billion kroons ($ nine billion) in sales.

On the evening of October 31, Skoda resumed production at two of its three plants in the Czech Republic. The headquarters in Mlada Boleslav has returned to work, where the Fabia, Kamiq, Scala, Karoq, Octavia and Enyaq iV models are assembled, as well as the Vrchlabi plant, which produces DSG robotic boxes for the entire Volkswagen Group. The site in Kvasiny (Superb, Karoq and Kodiaq) remained partially operational.

Earlier it was reported that Skoda may significantly reduce or even stop production at Czech plants from October 18 until the end of the year. The company’s warehouses have accumulated more than 50,000 understaffed machines awaiting the delivery of microchips. At the same time, the management assured that there would be no mass layoffs, and the workers would be compensated for downtime.

The automotive sector accounts for a quarter of industrial production in the Czech Republic, and local auto factories Skoda employ 180 thousand people. Problems with the auto industry have already affected the country’s economy: in the third quarter of 2021, its growth slowed down due to a decrease in production and, as a result, sales.

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