VW’s Skoda suspends Czech factories for week due to chip shortage

A logo is seen on a wheel of a Skoda Octavia car after a presentation of the company’s annual results to Mlada Boleslav on March 20, 2013. REUTERS / David W Cerny / File Photo

PRAGUE, Sept.16 (Reuters) – Czech automaker Skoda Auto, part of the Volkswagen Group (VOWG_p.DE), will halt production at two domestic factories for a week in late September due to a chip shortage, announced Thursday the company.

From car delivery delays to a shortage of home appliances and smartphones, businesses and consumers around the world have faced the consequences of an unprecedented shortage of semiconductor chips.

In the Czech Republic, production was hit in the automotive sector, a key driver of the economy. Skoda has thousands of unfinished cars waiting for chips.

“The recent outbreaks of COVID-19 in Asia, for example Malaysia, are forcing semiconductor manufacturers to shut their factories again. This has led to industry-wide auto production adjustments, and SKODA AUTO is also affected, ”the company said in an email. response to questions from Reuters.

“We will therefore shut down our production lines at the Mladá Boleslav and Kvasiny factories in calendar week 39.”

She commented on any impact on her third Czech site, the Vrchlabi Component Plant.

Skoda union leader Jaroslav Povsik previously told a union bulletin that canceled shifts would be added to the vacation scheduled for September 27 and 28 to mark a public holiday.

Skoda said it expects semiconductor production to increase in the fourth quarter.

“We expect the overall supply situation to improve by the end of the year,” he said.

Skoda is one of the three car manufacturers in the central European country. The other two are the South Korean Hyundai Motor Co (005380.KS) and the Japanese Toyota Motor Corp (7203.T).

Toyota has also been forced to shut down production at its Czech plant for periods in recent months.

As manufacturers have faced global supply and transportation bottlenecks caused by the COVID-19 pandemic, the Czech economy has returned to solid growth after a massive contraction in 2020.

Sentiment in the manufacturing sector also remained strong, but slipped from the highs recorded earlier this year.

Volkswagen’s Spanish unit, SEAT, plans to extend partial car assembly suspensions at its factories near Barcelona until 2022 due to the chip shortage. Read more

Reporting by Jason Hovet Writing by Jason Hovet and Jan Lopatka Editing by Himani Sarkar and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

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