Business & Investment

Czech car sector cuts 250,000 cars this year due to Reuters chip shortage

© Reuters. File photo: A car is parked in the courtyard of the Skoda Auto factory in Muradah Boreslav, Czech Republic. The company resumed production after shutting down due to a coronavirus pandemic (COVID-19). Photo taken in April in Muradah Boreslav, Czech Republic

Prague (Reuters)-Czech automakers produce 250,000 fewer cars than expected this year due to a global chip shortage, and the auto industry loses 200 billion crowns ($ 9.14 billion) in auto sector sales The Association (AutoSAP) said. on Sunday.

According to AutoSAP, domestic passenger car production fell 53.1% year-on-year to 56,157 units in September.

He said the impact of a chip shortage would outweigh the impact of last year’s pandemic shutdown, and told the government an aid program created during last year’s coronavirus pandemic to compensate companies for the wages of idle workers. Was asked to activate.

According to AutoSAP, cumulative production from January to September was 831,653 units, up 2.9% year-on-year.

“Since August, production has been heavily affected by production restraints, and September statistics support a negative trend,” AutoSAP said.

Volkswagen (DE :) Skoda Auto, the country’s largest producer, has announced that it will significantly limit or close production at its Czech plant from next week to perhaps the end of the year.

The automotive sector is the backbone of the highly industrialized Czech economy, employs 180,000 workers and accounts for a quarter of industrial production.

SAP said automakers will lose 120 billion crowns of revenue and parts suppliers will lose another 80 billion crowns. Revenue of 200 billion crowns represents about 3.3% of the country’s projected gross domestic product this year.

Other automakers with assembly plants in the Czech Republic are Hyundai and Toyota, which are least affected by chip shortages.

($ 1 = 21.8710 CZK)

(This story has been modified to remove “pending” from the heading)

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Czech car sector cuts 250,000 cars this year due to Reuters chip shortage

https://www.investing.com/news/stock-market-news/czech-car-sector-to-make-250000-fewer-vehicles-this-year-due-to-chip-shortage-2645925 Czech car sector cuts 250,000 cars this year due to Reuters chip shortage

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