Volkswagen’s Skoda Halts Production in Czech For a Week Due to Chip Shortage

Skoda Auto, Czech Republic based car manufacturer owned by leading German based automotive manufacturer Volkswagen Group AG (ETR: VOW3) says that it stopped production activities at its main domestic factories for a week at the end of September due to chip shortage.

This chip shortage resulted to various unexpected circumstances like delayed car deliveries, a supply decrease of home appliances and increased smartphone prices in the country.

The chip shortage situation has been affecting the entire world for a while now due to unexpected shortage of semiconductor microchips which started being witnessed immediately the pandemic set foot leading due to increased use of consumer electronics.

The head of Skoda’s Union, Jaroslav Povsik, says that general production in the auto sector in the country has been affected by the chip shortage. According to Povsik, the company has thousands of unfinished cars which are pending chips.

Japanese auto maker Toyota Motors, which also has production facilities in Czech said it was also forced to halt production in the country due to chip shortage.

Povsik added that cancelled production shifts will be added to upcoming national holidays between September 27 and 28 to try and make it up for the one week when production was halted.

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