Home » Business » The demise of the largest carmaker in the Czech Republic is imminent. Hundreds of thousands of Czechs on the pavement

The demise of the largest carmaker in the Czech Republic is imminent. Hundreds of thousands of Czechs on the pavement

The high prices of energy, especially gas, as well as its possible shortage, are not only a problem for families. At the same time, it is true that they will eventually flood somehow, because no one would allow people to stay in the winter. On the other hand, it can really put a strain on the industry and the companies that operate there.

Transfer of production from the Czech Republic

As it turned out, in the Czech Republic, for example, no aid is foreseen for large companies regarding the price of natural gas. At the same time, it is many times higher than last year. At the same time, it is the large companies that are among the largest consumers and whose production therefore contributes significantly to the price of this energy.

The first companies are already calling and some have already started layoffs. However, they still hope that the situation will be resolved somehow. But now it has hit a really heavy gauge. According to the Bloomberg agency, the Volkswagen company has threatened to shift vehicle production not only from Germany, but also from Central and Eastern Europe. And this assumes that the energy crisis will not be resolved and the price of gas will continue to be so high.

In the Czech Republic, the group’s products are supplied by the automotive company Škoda, which in turn employs tens of thousands of people and indirectly hundreds of thousands of other jobs throughout the entire component production chain for the industry. automotive are connected to it. If Škodovka stopped production in the Czech Republic, these people would likely find themselves on the sidewalk.

Photo: Shutterstock

A solution is needed

The Volkswagen Group is now in a very unflattering situation in Europe. The hub of its production lies in countries that are completely dependent on the import of natural gas. These are Germany, the Czech Republic and Slovakia.

If there wasn’t enough gas here, or if it continued to cost high prices, the company would have virtually no choice but to move production elsewhere. At the same time, the countries of southwestern and northern Europe, which are able to get enough liquefied gas through their terminals, should benefit.

It is therefore clear that the state must start solving this energy crisis not only at the level of households, but also at the level of large companies. After all, everything is closely connected. If these companies go elsewhere, it will have an impact on ordinary people who will lose their jobs and will not be able to finance their basic needs.

Photo: Shutterstock

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