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Škoda Auto is limiting production, stopping it completely in some places

Shifts in the Czech Škoda plants were canceled last month and the cancellation continued this week.

“The lack of chips and other parts will require further canceled shifts both this week and next week. In addition, in the 26th calendar week on an even larger scale, some operations will stop for a whole week, “the magazine said.

Škoda Auto operates three production plants in the Czech Republic; in Mladá Boleslav, in Kvasiny and in Vrchlabí. From next Monday at least until Saturday, production will stop completely in the entire plant in Kvasiny.

Production is also limited in Mladá Boleslav. For example, the MBII welding shop completely dropped the Sunday to Monday night shift as well as the Friday morning and afternoon shift.

Unions are now working to provide employees with compensation for full daily earnings beyond the law. “Once again, we negotiated compensation in the amount of 85 percent of the average wage,” added Jaroslav Povšík, chairman of the KOVO trade union.

However, there are reportedly growing concerns among employees about the future of jobs. “However, the KOVO unions have negotiated a strong rescue system and at the same time are ready to defend the job of each of our members,” the magazine added.

According to the head of production and logistics of Škoda Auto Michael Oeljeklaus, the carmaker cannot complete up to 5,000 cars a week due to a lack of chips. The company now has 33,000 unfinished cars in the parking areas, which have a capacity of 55,000 cars.

According to the forecast of the chip chip manufacturer Flex, the automotive industry may face a shortage of semiconductors, which are important for the production of components, at least until the middle of 2022. Blacker scenarios speak of a continuation of the shortage until 2023.

However, computer manufacturers also have problems, and the shortage of goods is currently mainly computer graphics cards, for which the situation is complicated by the high demand from cryptocurrency miners.

However, carmakers have been worse off for a long time, as chip manufacturers are primarily trying to serve electronics manufacturers. The lack of chips is affecting the automotive industry worldwide.

Renault also warned of growing difficulties in the automotive sector in April. According to her, these are related to the development of exchange rates, raw material prices and, last but not least, the lack of electronic components.

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