Skoda limited the production of cars at factories in the Czech Republic for two weeks, leaving only one assembly line of the enterprise in Kvasiny to workers. According to the manufacturer, this is a forced measure caused by a shortage of scarce microchips and other components. If the situation in Asia does not improve, production sites may close until the end of the year.
Since Monday, Skoda has stopped two of the three factories in the Czech Republic. It is the headquarters in Mlada Boleslav (Fabia, Kamiq, Scala, Karoq, Octavia and Enyaq iV) and the site in Vrchlabí, where DSGs are produced for the entire Volkswagen Group. Only the plant in Kvasiny (Superb, Karoq and Kodiaq) remains partially working, whose conveyor was used for the final assembly of about 10 thousand cars. Most of the employees were sent home, but with 85 percent of their wages retained.
According to representatives of the trade union, there will be no mass layoffs. The company’s management intends to preserve jobs and provide a decent level of compensation. Also, from November 1, a new reduced work standard will begin to operate, which will maximize the workload of the main staff and simplify the transfer of employees between operations. First of all, workers will move within the same plant, but, if necessary, between all three factories.
The shutdown of Skoda factories is a serious blow to the Czech economy, and the problems will not be resolved quickly, because the company does not expect the production of microchips to reach acceptable volumes until the second half of 2022. Now about 180 thousand people work at Skoda factories. The entire automotive industry in the country accounts for nine percent of gross domestic product, 26 percent of manufacturing, and 24 percent of exports.