The carmaker will lose trillions of crowns due to the lack of chips. Unfinished cars stand out, used cars become more expensive – ČT24 – Czech Television

The parking lot at Chrast near Chrudim fills one car after another – and there is not much space left. Cars have been coming here for almost a month, there are up to seven trucks a day. On Friday, there are around a thousand cars and the area for others is already being prepared. Skoda cannot complete these cars due to missing chips. Therefore, after mid-October, it will reduce or stop production altogether – perhaps until the end of the year.

“It seems that the improvement in the supply of components that contain chips will be in the second half of 2022,” outlines Škoda Auto spokesman Tomáš Kotera.

The carmaker is not going to lay off employees if they don’t have a job for them, they will leave them at home for 85 percent of their salary. “Every employer does everything to avoid having to lay off, because it would be very difficult to hire again,” explains Petr Jonák, a member of the Board of Directors of the Confederation of Industry and Transport.

Other car manufacturers also have problems. For example, the Cologne-based Toyota continues to produce with restrictions and has not ruled out a complete shutdown. And the unfavorable situation also affects suppliers of components for car manufacturers. For example, in a company that produces octavia upholstery, two-thirds of workers stayed at home.

“We are looking for a replacement job for those employees. Unfortunately, those for whom we are not able to provide it have to stay at home sixty percent, “notes Jan Zima, chairman of the Sněžka Náchod production cooperative.

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Škoda’s problems also affect the Kasko company from the Uherské Hradiště region. Due to the shutdown, the carmaker will not take the plastic parts it produces in Uherské Hradiště – and as a result, Kasko will also shut down production for two weeks. “Škoda Auto is our biggest customer. It makes us sixty percent of our turnover, “explains Petr Valda, the company’s executive director.

The lack of chips and the breakdown of supply chains are also reflected in the sale of new cars. The waiting time varies from brand to brand. In some places, people will wait for a new car for more than a year, and instead of in car showrooms, unfinished cars will continue to accumulate in parking lots.

Used cars become more expensive

The situation on the car market is also reflected in the second-hand trade. Bazaars report record interest due to missing chips. By the end of September, almost as many older cars had been sold as in the whole of last year. But even those interested in second-hand cars will pay extra – their prices are rising by up to a sixth. On the contrary, the supply of cars decreased at a similar pace. The decline thus replaces imports from abroad, which is currently at a ten-year high.

In the first half of the year, an estimated tenth of all cars sold were missing on the market. In some large bazaars, it is as if the market crisis is not even known. There were not many vacancies left in the sales area, but the reality is reflected in the view of the price tag. In some cases, cars became more expensive by up to fifteen percent year on year.

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Due to interest, they will probably continue to grow. “We see a huge increase in customer interest in buying a car, because they still perceive it as the safest way of passenger transport compared to public transport,” comments Karolína Topolová, CEO of Aures Holding, which includes the AAA Auto bazaar.

“Last year’s best-selling model, the Škoda Rapid in the petrol variant, sold for 318,000 crowns. The same model, practically a year older, is now sold from 350 to some 420 thousand crowns, “illustrates Jakub Šulta, the founder of the Carvago car market.

Another reason that will extend the tours of used cars is the overtaken market – cars with better technical condition are running out. “You won’t find cars that are in the same condition as, for example, two years ago. Whether in terms of technical condition or just the equipment, “adds Šulta.

Even worse situations are reported by small car bazaars. “We need half the number of cars, so the change is quite fundamental,” admits the owner of the second-hand car dealership in Splzov in the Jablonec region, Daniel Kaláb.

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