Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Czech car sector to make 250,000 fewer vehicles this year due to chip shortage

10/17/2021 | 02:47am EST
FILE PHOTO: Cars are parked in the courtyard of Skoda Auto's factory in Mlada Boleslav

PRAGUE (Reuters) - Czech car makers will produce quarter a million fewer cars than expected this year due to the global shortage of chips and the automotive sector will lose 200 billion crowns ($9.14 billion) in sales, the Auto Industry Association (AutoSAP) said on Sunday.

AutoSAP said domestic passenger car production dropped by 53.1% in September year-on-year, to 56,157 cars.

It said the chip shortage impact would exceed that of pandemic shutdowns last year, and called on the government to activate an aid programme created amid the coronavirus pandemic last year to compensate firms for wages of idled workers.

AutoSAP said production rose 2.9% year--on-year cumulatively in the January-September period to 831,653 cars.

"Already since August, production has been significantly affected by output curbs and the September statistic confirms the negative trend," AutoSAP said.

The country's biggest producer, Volkswagen 's Skoda Auto, has said it would significantly limit or shut production at its Czech plants from next week, possibly until the end of the year.

The car sector is the backbone of the highly industrialised Czech economy, employing 180,000 workers, and makes up a quarter of industrial output.

SAP said 120 billion crowns in revenue would be lost at car makers and a further 80 billion at parts suppliers. The 200 billion crowns in revenue equals to about 3.3% of the country's expected nominal gross domestic product this year.

The other car makers with assembly plants in the Czech Republic are Hyundai -- which has been the least affected by the chip shortage -- and Toyota .

($1 = 21.8710 Czech crowns)

(This story corrects to remove 'hold' from headline)

(Reporting by Jan Lopatka; Editing by Raissa Kasolowsky)


ę Reuters 2021
Latest news "Economy & Forex"
04:22aEni sells Snam 49.9% stake in Algeria gas pipelines for 385 million euros
RE
03:13aCzech Republic reports 20,315 daily coronavirus cases
RE
02:30aGhana's parliament votes down 2022 budget over electronic tax
RE
02:20aMINISTRY OF FINANCE OF REPUBLIC OF INDIA : Income Tax Department conducts search operations on two major real estate developers of Ludhiana
PU
02:10aExplanatory Notes on the Revised Risk Management Directive
PU
02:10aBANK OF GHANA : Risk Management Directive
PU
01:57aELON MUSK : India tells public to shun Musk-backed Starlink until it gets licence
RE
01:55aMalaysia police to look into claim ATA whistleblower beaten by police
RE
12:45aIndia's Paytm Sept net loss widens, says maintains growth momentum
RE
12:30aPRIME MINISTER JANEZ JANŠA : ASEM is a unique forum for promoting cooperation between Europe and Asia
PU
Latest news "Economy & Forex"