Skoda Stops Work on Fridays

Although the global recession has reached its apogee, the automotive industry crisis with global carmakers slashing production and struggling to remain in business with or without government aid. Skoda is no exception to the rule and today said it would stop work on Fridays as part of its cost-cutting program which was obviously imposed by the continuously decreasing demand on most emerging markets.

Skoda's representatives claim the Czech company recorded very poor sales in the last few months so today's announcement is nothing else than an obvious decision to counteract the financial crisis."The reason is a drop in demand for our vehicles, mainly in the most important western European markets,” a Skoda representative was quoted as saying by Just-auto.

Even though there's no job cut prepared for the time being, recent studies claim that the Czech carmaker may announce a new series of cost-cutting measures in the first months of 2009. Approximately 13,552 employees may be let go in 2009, the aforementioned source added citing the Czech Car Industry Association, with Skoda likely to cut approximately 870 jobs or about 3 percent of its workforce.

Moreover, Czech suppliers may also encounter tough times in 2009, the organization predicted, with this sector “to be hit hardest” in case the automotive industry does not adopt an ascending trend.

Skoda is not the first company that counteracts the global recession by preparing production cuts, with General Motors, Chrysler, Ford, Volvo and a bunch of other US, Japanese and European carmakers preparing similar moves. Detroit 3 on the other hand, is experiencing even more difficult problems, with bankruptcy almost unavoidable in case its loan request doesn't receive government approval.