Škoda Auto Crisis: The Lack Of Chips And Raw Materials Will Impact The Car’s Price And Production

The crisis hit Škoda is caused by a scarcity of semiconductors and raw components. Workers’ shifts are being canceled due to a lack of parts, and possible redundancies are on the horizon. Customers will also have to wait several months longer for a car than they have in the past. Purchasing a new vehicle will become more expensive as well. 

Škoda Auto, like other manufacturers, lacks onboard electronics chips. “Skoda has only ust disclosed the problem, but they’ve been talking about it for months,” said Lucie Hrdličková, an economic journalist, adding that the latest automobiles might include up to 1,400 chips. 

“The start of the last spring tsunami, when automotive companies shut down production, and nobody knew how long it would persist, is now a global concern. They expected demand when they returned after a few weeks but the demand exceeded all expectations.” noted Jan Rafaj, vice president of the Czech Republic’s Confederation of Industry.

In addition, there may be a scarcity of iron, steel, and plastics, which may affect the car’s price.

Fears of being laid off 

In the Czech Republic, Škoda Auto employs 34,000 people. Due to the scarcity of parts, the Mladá Boleslav automaker is cancelling shifts for its employees. For many years, Škoda has had a strong work union that has protected its workers. However, at the beginning of this year, it announced that it would have to reduce its workforce by 3,000 people, but talks are still ongoing according to Hrdliková.

“I am confident that the economy will fluctuate for nine to eighteen months before stabilizing. That doesn’t rule out the possibility of some commodities remaining at higher prices. “Rafaj explained