Since the coronavirus pandemic set foot in the world, chip shortage has been the talk of the day due to increased use of devices since many activities like learning, meetings and others shifted to the online space leading to demand increase of computer chips around the globe.
The Czech Republic car industry is expecting to produce 250,000 fewer cars this year courtesy of the ship shortage witnessed across the world. This was announced by the Auto Industry Association (AutoSAP) on October 17.
According to AutoSAP this declined car production in 2021 will cost the car industry a loss of $9.1 billion. AutoSAP further said that industry data up to September shows that car production in the country dropped by 53.1% year-on-year to 56, 157 cars.
“Already since August, production has been significantly affected by output curbs and the September statistic confirms the negative trend,” added AutoSAP.
The industry’s regulator says that the chip shortage will continue being witnessed even more than last year’s short at the height of the pandemic when lockdowns and movement restrictions was the order of the day on most parts of the world.
AutoSAP is further call on the government to commence a bailout program formulated last year at the height of the pandemic to help compensate companies for wages and idling employees.