Skoda to halt Czech plants for a week due to chip shortage

In the Czech Republic, production in the auto sector, a major driver of the economy, has been affected. Skoda has thousands of unfinished cars waiting for chips. Skoda said it expects semiconductor production to increase in the fourth quarter.


Skoda has thousands of unfinished cars waiting for chips

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Skoda has thousands of unfinished cars waiting for chips

Czech carmaker koda Auto, part of Volkswagen Group, will halt production at two domestic plants for a week at the end of September due to chip shortages, the company said on Thursday. From delays in car deliveries to reduced supplies of home appliances and smartphones, businesses and consumers around the world are facing the consequences of an unprecedented shortage of semiconductor microchips. In the Czech Republic, production in the auto sector, a major driver of the economy, has been affected. Skoda has thousands of unfinished cars waiting for chips.

The company said in an email, “The recent COVID-19 outbreak in Asia, for example in Malaysia, is forcing semiconductor manufacturers to close their factories again. This has resulted in an industry-wide adjustment in car production, And Skoda Auto has also been affected.” Reuters questions answered. “Therefore we will close our production lines at the Mlada Boleslav and Kvasiny plant in calendar week 39.” It commented on any impact on the components factory at its third Czech site, Varchalabi.

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Skoda calendar week 39 . Will close its production lines at the Mlada Boleslav and Kvasiny plant in

koda’s union head, Jarosaw Povi, previously told a union newspaper that the canceled shifts would be added to the planned holidays on 27–28 September as a state holiday. Skoda said it expects semiconductor production to increase in the fourth quarter. “We expect the overall supply situation to ease by the end of the year,” it said. Skoda is one of three carmakers in the Central European country. The other two are Hyundai Motor Company of South Korea and Toyota Motor Corp of Japan. Toyota has also been forced to halt production at its Czech plant in the past few months.

While manufacturers have struggled with global supply and transport constraints due to the COVID-19 pandemic, the Czech economy has returned to solid growth after a massive contraction in 2020. Manufacturing sentiment also remains strong, but has slipped from the previously observed record. this year. Volkswagen’s Spanish arm SEAT plans to extend suspension partial car assembly until 2022 due to chip shortages at its plants near Barcelona.

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