The energy crisis is not just a great challenge for families. They somehow managed to saturate it by limiting the prices of electricity and gas. However, attention is increasingly turning to larger companies, which are exposed to the impact of high energy costs without any shield or perhaps an umbrella.
Cars don’t have to be made here
Some companies in the Czech Republic report that gas or electricity prices have risen up to twelve times. This is a big problem for the energy-intensive plants that dominate the country. And the question is whether it is even bearable.
Apparently, this is not the case for many companies. As Bloomberg reports, the Volkswagen company, which also includes Czech Škoda Auto, is considering moving products not only from Germany, but also from Slovakia and the Czech Republic. It could mean the end of production of the largest carmaker in the Czech Republic. .
According to Volkswagen, this option would come into play if the gas problem could not be solved, both its possible shortage and the unbearably high price.
Help does not come
In this regard, the car manufacturer also underlines the fact that the supply chains could be interrupted, precisely because of the high energy prices. In the Czech Republic, there is a large network of large companies engaged in the production of components for the automotive industry. They operate on a relatively small margin, and rising electricity or gas prices are a big problem for them. And if prices go up, it’s another complication for automakers.
At the same time, tens of thousands of employees work in Škodovka. If its domestic production were threatened and the announced move to southern or, conversely, northern European states, which have better access to gas, it would mean a huge blow to subcontractors as well. This already equates to hundreds of thousands of jobs.
Unfortunately, for the moment, the state does not provide aid to large companies. They are not affected by the cap on electricity and gas prices. At the same time, it is a question of whether they will see a solution. Nothing was promised.
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