Skoda Auto Cuts Production Again Due To Chip Shortage

Skoda Auto production line

Škoda Auto has further cut production due to a shortage of chips. Deliveries of car components have deteriorated even further, according to unions, according to which these are the most difficult moments since the merger of Škoda with the Volkswagen Group. Since the beginning of the year, Škoda has had to cancel several shifts, especially overtime, due to a lack of microchips.

Škoda, like other world car manufacturers, has a particular lack of chips that are needed for onboard electronics. Demand for chips exceeds supply, and chip production has been complicated by, among other things, winter snowstorms in Texas, where large chipmakers have had to stop or reduce production. For this reason, for example, the Toyota in Cologne had to completely stop car production for 14 days in March.

Shifts are canceled in Mladá Boleslav and Kvasiny in the Rychnov region. Employees thus stay at home, as compensation they receive their full daily earnings, ie 85 percent of the average wage, which includes, for example, extraordinary bonuses. “In recent months, we have been working intensively and successfully to minimize the effects of the global semiconductor shortage on production.

According to unions, there is no danger of layoffs. “We have everything under control, we have well-established agreements, it is still true that he will not be laid off. The fact that we adjust the staff through natural fluctuations and slowing down recruitment has always existed here, “trade union leader Jaroslav Povšík told the weekly.

However, the current situation may affect the total salary of employees. For example, workers lack income from overtime shifts, which are well paid. In contrast, the company has introduced voluntary overtime, where employees complete the assembly of cars for customers. “And there you can earn very good money in addition to your income,” added Povšík.

“Unfortunately, we do not see what the situation will look like next week. It is simply the most difficult moment in the history of the joint venture between Škoda Auto and Volkswagen, at a time when we are celebrating 30 years of mutual connection, “said Povšík.

Last year, Škoda Auto delivered over one million cars worldwide. It operates three production plants in the Czech Republic, produces in China, Russia, Slovakia, and India, mostly through group partnerships, as well as in Ukraine and Kazakhstan in cooperation with local partners. It is active in more than 100 markets.