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

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PRAGUE, Oct 17 (Reuters) – Czech car makers will produce quarter 1,000,000 fewer automobiles than anticipated this year due to the worldwide shortage of chips and the automotive sector will lose 200 billion crowns ($9.14 billion) in gross sales, the Auto Industry Association (AutoSAP) mentioned on Sunday.

AutoSAP mentioned home passenger car manufacturing dropped by 53.1% in September year-on-year, to 56,157 automobiles.

It mentioned the chip shortage affect would exceed that of pandemic shutdowns final year, and known as on the federal government to activate an help programme created amid the coronavirus pandemic final year to compensate companies for wages of idled staff.

AutoSAP mentioned manufacturing rose 2.9% year–on-year cumulatively within the January-September interval to 831,653 automobiles.

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

The nation’s largest producer, Volkswagen(VOWG_p.DE) ‘s Skoda Auto, has mentioned it will considerably restrict or shut manufacturing at its Czech crops from subsequent week, probably till the top of the year. learn extra

The car sector is the spine of the extremely industrialised Czech economic system, using 180,000 staff, and makes up 1 / 4 of business output.

SAP mentioned 120 billion crowns in income could be misplaced at car makers and an extra 80 billion at elements suppliers. The 200 billion crowns in income equals to about 3.3% of the nation’s anticipated nominal gross home product this year.

The different car makers with meeting crops within the Czech Republic are Hyundai (005380.KS) — which has been the least affected by the chip shortage — and Toyota (7203.T) .

($1 = 21.8710 Czech crowns)

(This story corrects to take away ‘maintain’ from headline)

Reporting by Jan Lopatka
Editing by Raissa Kasolowsky

Cars are parked in the courtyard of Skoda Auto's factory in Mlada Boleslav, Czech Republic, as the company restarts production after shutting downdue to the coronavirus pandemic (COVID-19) . Picture taken in Mlada Boleslav, Czech Republic, April 27, 2020. REUTERS/David W Cerny/File Photo