The prices of raw materials and energy also affect the largest domestic carmaker, Škoda Auto. The company published its results for last year, increasing its profitability mainly due to extensive operating savings.
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Even so, he will have to raise the prices of his cars. “The outlook for raw material prices is not happy. Steel and precious metal prices are currently rising incredibly fast, ”said Schäfer.
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Škoda Auto makes sure that it does not have to pass on the costs to customers too much. “Not only raw material prices are rising, but so are energy prices. Therefore, I think that in the medium term, an increase in the prices of our cars is inevitable, “said Škoda Auto CEO at a press conference.
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The war in Ukraine has also severely disrupted the supply chains of our largest carmaker. For example, in Ukraine, which is attacked by Russia, not only cable harnesses are produced, but also switches and other parts necessary for new cars. Ukraine is also an important supplier of steel.
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“Outages of cable harness supply currently have the greatest impact on production. This stops the whole process of vehicle production. It’s the car’s nervous system, without which it can’t be used, “said Thomas Schäfer. In the case of switches, you can build a car and wait for the switches to arrive.
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Škoda Auto is now determined to stay in Ukraine and support production there. At present, some suppliers have resumed production, although not at full capacity. “Every time an alarm comes, he has to run to hide in the shelter. They consider our highest recognition, ”added Schäfer.
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Within four or five weeks, however, Škoda Auto will start purchasing from other suppliers so that it can return to full production.
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The carmaker’s factories in Russia are currently closed, but Škoda continues to pay wages to its employees. Not only the so-called kurzarbeit, but also supplements so that people can enjoy themselves better. “The situation there is difficult,” Schäfer said.
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Over 800,000 cars
Škoda Auto’s non-consolidated net profit increased by 48 percent to 22.41 billion crowns. On the other hand, non-consolidated revenues decreased by 0.4 percent to 422.6 billion crowns. Board member Christian Schenk said that despite the global crisis, Škoda Auto is “in good financial condition”.
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The biggest drop was recorded by the carmaker in China, while in India car manufacturers were successful – sales there doubled in 2021. In Europe, Škoda holds the position of the eighth best-selling car brand.
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Last year, Škoda Auto increased its operating profit by 43.2 percent to 1.08 billion euros, ie 26.8 billion crowns. Higher margins, favorable exchange rate developments and lower fees for carbon dioxide emissions contributed to the growth.
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The Mladá Boleslav carmaker increased revenues by 3.9 percent to 17.7 billion euros, in terms of 439.2 billion crowns. The carmaker’s production fell by 14.8 percent last year to almost 802,000 cars. The company published the results today at a press conference and in an annual report. Volkswagen also pointed out that the main plant in Mladá Boleslav celebrated an extraordinary milestone last year, with 15 million vehicles being produced there since the start of car production in 1905.
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Due to the shortage of semiconductors and the coronavirus pandemic, the carmaker delivered 878,200 cars to customers worldwide last year, which is 12.6 percent less year on year. The lack of chips meant that Škoda did not produce 280,000 cars.
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