Skoda resumes production after two weeks of shutdown



PRAGUE – Volkswagen Group Skoda is restarting most of its production lines on Sunday after a two-week outage caused by a shortage of semiconductor chips.

Skoda had said on October 7 that it would drastically reduce or even stop production from October 18 until the end of the year due to the global chip shortage hampering the auto industry.

“I can confirm that most of Skoda Auto’s production lines will return to work after a two week outage tonight, starting with the night shift at 10 p.m.,” Skoda spokeswoman Kamila Biddle said on Sunday.

The Czech Automobile Industry Association has said that the country’s automakers will produce a quarter of a million cars less than expected this year due to the global shortage of microchips, which will cost the auto sector 200 billion crowns. ($ 9 billion) in sales.

Besides Skoda, Toyota and Hyundai have automobile factories in the Czech Republic

The automotive sector is the backbone of the Czech economy, employing 180,000 workers and accounting for a quarter of industrial production.

The Czech economy grew more slowly than expected in the third quarter, showing a faltering recovery as external demand declined and the global supply crisis hit the auto sector.


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