Photo: Skoda/Volkswagen
The Czech Republics’ largest automaker is the latest to fall victim to a global microchip shortage that’s turning into a blight that could see the entire industry brought to its knees. Reuters reported that Skoda, now under the leadership of Volkswagen, saw a 53.1% reduction in sales this September compared to the same month in 2020.
AutoSAP, the shell company under which Skoda conducts business, announced they’d lose as much as 200 billion Czech crowns (Around $9 Billion) in revenue by the time the year is out, with further losses expected to follow in 2022.
AutoSAP employs over 180,000 skilled workers in everything from assembly line workers to supervisors, administrators, and dealerships. The constant stop and start nature of their current work environment made some workers fear losing their jobs.
As it happened, Skoda’s workers had good reason to be fearful. As of October 17th, 2021, Volkswagen has begun drastically reducing and, in some instances, outright ceasing production on Skoda’s current model lineup until a solution can be found, possibly lasting until the end of the year.
Historically, auto worker’s unions have been strong in the Czech Republic. A strike that took place back in 2007 successfully yielded a collective bargaining agreement to maintain pay increases at the appropriate yearly incremental level for Skoda employees. Fifteen years later, leaders on the union and corporate ends of Skoda are struggling to find reasons to keep the factory doors open.
Both Hyundai and Toyota also maintain substantial manufacturing facilities in the Czech Republic. Toyota’s being headquartered in the town of Kolin and Hyundai’s in the village of Nošovice. Respectively, those brands are the two most notably treading water during the shortage. Unfortunately, their hometown auto moniker can’t say the same about itself. It’ll be up to Volkswagen to find some sort of solution, but as of right now, options seem somberly limited.
AutoSAP employs over 180,000 skilled workers in everything from assembly line workers to supervisors, administrators, and dealerships. The constant stop and start nature of their current work environment made some workers fear losing their jobs.
As it happened, Skoda’s workers had good reason to be fearful. As of October 17th, 2021, Volkswagen has begun drastically reducing and, in some instances, outright ceasing production on Skoda’s current model lineup until a solution can be found, possibly lasting until the end of the year.
Historically, auto worker’s unions have been strong in the Czech Republic. A strike that took place back in 2007 successfully yielded a collective bargaining agreement to maintain pay increases at the appropriate yearly incremental level for Skoda employees. Fifteen years later, leaders on the union and corporate ends of Skoda are struggling to find reasons to keep the factory doors open.
Both Hyundai and Toyota also maintain substantial manufacturing facilities in the Czech Republic. Toyota’s being headquartered in the town of Kolin and Hyundai’s in the village of Nošovice. Respectively, those brands are the two most notably treading water during the shortage. Unfortunately, their hometown auto moniker can’t say the same about itself. It’ll be up to Volkswagen to find some sort of solution, but as of right now, options seem somberly limited.
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