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Volkswagen's Skoda Auto halts production for two weeks

Published 10/18/2021, 02:56 AM
Updated 10/18/2021, 04:16 AM
© Reuters. FILE PHOTO: A Volkswagen (VW) logo is pictured next to a logo of Skoda during the second media day of the 86th International Motor Show in Geneva, Switzerland, March 2, 2016.   REUTERS/Denis Balibouse

PRAGUE (Reuters) -Skoda Auto started a two-week outage on Monday as the carmaker contends with the global shortage of chips and other components, the Vokswagen-owned company said.

Skoda wants to complete 10,000 unfinished cars during the outage, which will leave only one production line running, a spokesman said.

"Skoda Auto has been struggling with a big shortage of critical components, which has forced it to limit production significantly in the past weeks," spokesman Tomas Kotera said.

Skoda, the Czech Republic's biggest exporter, said on Oct. 7 that it would "significantly reduce or even halt" production from Oct. 18 until the end of the year because of the global shortage of chips hobbling the automotive sector.

© Reuters. FILE PHOTO: A Volkswagen (VW) logo is pictured next to a logo of Skoda during the second media day of the 86th International Motor Show in Geneva, Switzerland, March 2, 2016.   REUTERS/Denis Balibouse

The Czech Auto Industry Association on Sunday said that Czech carmakers will produce quarter of a million fewer cars than expected this year because of the global microchip shortage, costing the automotive sector 200 billion crowns ($9.14 billion) in sales.

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

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