Skoda’s lack of chips can complicate production

Škoda Auto, the automaker from Mladá Boleslav, has faced a shortage of chips as part of its bulk equipment in its cars. This could lead to interruptions or cuts to production of some models, said Martina Gillichová, a spokeswoman for Škoda Auto, last week.

Therefore, the data was confirmed to the weekly Škodováckýodborář, as chip deficiencies were caused by the coronavirus epidemic and demand growth.

“Due to the failure of a semiconductor device in the entire Volkswagen Group̵’s supply chain, Škoda Auto will suffer a shortage of this component in the coming months,” Gillichová said. According to her, the change in production volumes cannot be ruled out.

“For these reasons, automakers will do their best to cope, such as optimizing the ratios of the produced models and, where possible, using the ability to manufacture other models,” Gillich said, for example. She cited an increase in production for the new Enyaq iV electric SUV.

“Due to the coronavirus epidemic, increasing demand and other reasons, the missing chip has become a bottleneck. This can lead to disruptions or cuts in production of some cars, which ultimately means shutdowns, overhaul and completing work, ”union chief Jaroslav Povšík said on a weekly basis.

According to trade unions, the missing chips can have an effect in the form of increased production costs and lower profits. In this context, Povšík advised the company to withdraw production of the Karoq model from Bratislava. “The reason is simple – we have to secure the workload and workload for all locations in the Czech Republic. It is about 2,000 euros (about 52,000 CZK) more expensive, ”the union said.

According to the trade union, the lack of chips may be most pronounced, for example, in Superb model production, if as a result, thousands of pieces of production have to be reduced, it will have a significant impact on the company’s financial results, according to the union. This is the model with the maximum margin.

In 2019, Škoda Auto delivered 1.24 million vehicles worldwide, with three production plants in the Czech Republic, production in China, Russia, Slovakia and India, with most of them being group partners, as well as in Ukraine and Kazakhstan. Cooperate with local partners It is used in more than 100 markets, employing nearly 39,000 people, almost 34,000 in the Czech Republic.

1.February 2021