The Czech Auto Sector Will Reduce Production In 2021

The Czech auto sector cuts production for the year by about 250 thousand cars due to the crisis of lack of segments

Czech automakers will cut production by about a quarter of a million vehicles this year due to a global shortage of computer chips, which will cause the auto sector to lose sales of 200 billion kroner ($9.14 billion).

The Czech domestic production of passenger cars fell by 53.1% in September on an annual basis to produce only 56,157 cars, according to the AutoSAP Czech Automobile Industry Association, but production during the period from January to September witnessed a growth of 2.9% on an annual basis, recording the production of 831,653 cars.

AutoSAP sees the impact of the slide crisis will outweigh the damage caused by quarantines during the outbreak last year, and has called on the government to revitalize the aid program it devised last year during the pandemic to compensate companies for paying unemployed employees.

The country’s largest automaker – Skoda Auto, a subsidiary of the giant Volkswagen – has stated that it will limit production in its factories and may stop permanently starting next week and possibly until the end of the year, knowing that the auto sector is the backbone of the Czech economy, where it provides 180,000 jobs and constitutes a quarter of the industrial output in the country’s economy.

The Czech federation stated that car companies will lose 120 billion kronor in revenue and auto parts suppliers will incur losses amounting to 80 billion kronor as well. Together, these figures (200 billion kronor) represent about 3.3% of the expected GDP of the Czech Republic this year.

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