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Tuesday, December 7, 2021

Czech Republic. 250,000 cars will not be produced due to the lack of semiconductors

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250,000 fewer cars will be produced in the Czech Republic due to the global shortage of chips, reports Reuters. According to the Czech association of car manufacturers, the automotive sector will lose as much as CZK 200 billion (USD 9.14 billion).

The organization reports that the domestic production of passenger cars fell by 53.1 percent in September. year on year up to 56 157 cars.

Car makers emphasize that the chip shortage crisis could be much more severe than the one associated with the pandemic and economic shutdown. They call on the government to introduce aid packages for companies that have to put production to a standstill.

Czech Republic. The chip shortage is hitting the automotive industry

“The impact of shortages on production was visible already in August, the statistics from September only confirm this negative trend” – the producers write.

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The largest producer in the country, owned by Volkswagen Skoda Auto, has announced that it will significantly reduce or shut down production at its Czech plants from next week. Production downtime may last up to the end of the year.

The automotive sector is key to the highly industrialized Czech economy. It employs as many as 180,000 employees.

The industry estimates that car manufacturers will lose 120 billion crowns and the remaining 80 – parts suppliers. The total potential loss of CZK 200 billion is a huge blow to the sector.

The remaining car manufacturers with factories in the Czech Republic are Hyundai and Toyota.

The crisis in the semiconductor market. “The Biggest in Decades”. FIND OUT MORE >>>

Main photo source: Shutterstock

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