William Malcolm

Coronavirus Closes 90% Of Czech Auto Sector

The coronavirus has shutdown 90 percent of the automotive industry in the Czech Republic. Over 150,000 jobs are at risk, the Automotive Industry Association said today. The Auto Industry Association is calling on the government to fast track measures to keep the industry afloat.

The Association proposes the government extend the Antivirus program until the third quarter of this year and to speed up the process of refunding excessive VAT deductions. The group also wants a commercial loan and guarantee program for companies over 250 employees.

They also propose allowing cross-border movement of specialized experts, commuters, and goods to help restart the economy.

The Automotive Industry Association represents 140 critical companies in the industry. Automotive companies directly employ 170,000 employees and generate annual sales of over CZK 1.1 trillion. They contribute 9% to the Czech GDP, accounting for 23% of exports and 26% of Czech industrial production.