Skoda Auto production line

William Malcolm

Skoda Auto Cuts Production Due To Chip Shortage

Škoda Auto continues to cancel shifts due to the global shortage of chips used in onboard electronics. According to the unions, problems can be expected to continue through the autumn, Škodovácký odborář reports.

Due to the lack of chips, there will also be no mass overtime or already agreed flex shifts, ie night shifts from Friday to Saturday beyond normal working hours. “There is still no and no decrease in current employment or loss of earnings in the event of obstacles, where the value of 85 percent of the average wage for the employees concerned remains negotiated by us,” said Jaroslav Povšík, chairman of the works council. Extraordinary bonuses are also included in the average wage, so employees will receive more money for a canceled shift than for a job they have worked.

Although according to unions, intensive work is being done to ensure a stable supply of all parts, various fluctuations can probably be expected during the autumn. The Škoda company strives to maintain the continuity of production so that the cars can reach the customers as soon as possible after completion. “It is necessary for the future, jobs and maintaining earnings. However, the abolition of shifts cannot be completely avoided,” the unions said.

Due to the lack of chips, the company had to extend the company-wide holiday by a week, which also started a few days earlier. The employees returned to work on Sunday at 22:00, starting with the night shift on Monday.

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.