Škoda Auto to halt production for a week due to chip shortage

Car manufacturer Škoda Auto will cease production in its Mladá Boleslav plant for a week starting September 27 due to a shortage of chips which are used in its electronics systems, the company’s trade union weekly Škodovácký odborář reports. Employees will receive 85 percent of their average salary for a cancelled shift, according to the trade unions.

The news comes soon after a statement by Škoda CEO Thomas Schäfer last weekend, who said in an interview with the newspaper Augsburger Allgemeine that the car manufacturer is not able to produce 100,000 vehicles due to the chip shortage.

Škoda Auto is not the only car manufacturer closing its factory in Czechia for a week due to chip shortages. The Kolín plant of Toyota Motor Manufacturing halted its production this week and will restart from Sunday, September 19.