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A brand is seen on a wheel of a Skoda Octavia automotive after a presentation of the corporate’s annual ends in Mlada Boleslav March 20, 2013. REUTERS/David W Cerny

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PRAGUE, Sept 16 (Reuters) – Czech carmaker Skoda Auto, a part of the Volkswagen (VOWG_p.DE) group, will halt manufacturing at two home vegetation for per week on the finish of September on account of chip shortages, the corporate mentioned on Thursday.

From delayed automotive deliveries to a provide shortfall in house home equipment and smartphones, companies and customers the world over have been dealing with the results of an unprecedented scarcity in semiconductor microchips.

Within the Czech Republic, manufacturing has been hit within the auto sector, a key driver of the financial system. Skoda has hundreds of automobiles unfinished because it waits for chips.

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“Latest COVID-19 outbreaks in Asia, for instance in Malaysia, are forcing semiconductor producers to shut their factories once more. This has resulted in industry-wide changes to automotive manufacturing, and SKODA AUTO can also be affected,” the corporate mentioned in an emailed response to Reuters questions.

“We are going to due to this fact cease our manufacturing traces within the Mladá Boleslav and Kvasiny plant in calendar week 39.”

It did touch upon any affect on its third Czech web site, parts manufacturing unit at Vrchlabi.

The pinnacle of Skoda’s union, Jaroslav Povsik, had earlier instructed a union e-newsletter that cancelled shifts can be added to deliberate holidays on Sept. 27-28 to mark a state vacation.

Skoda mentioned it anticipated semiconductor manufacturing to be ramped up within the fourth quarter.

“We anticipate the general provide scenario to ease by the top of the 12 months,” it mentioned.

Skoda is certainly one of three carmakers within the central European nation. The opposite two are South Korea’s Hyundai Motor Co (005380.KS) and Japan’s Toyota Motor Corp (7203.T).

Toyota has additionally been compelled to halt manufacturing at its Czech plant for durations previously few months.

Whereas producers have needed to grapple with international provide and transport bottlenecks brought on by the COVID-19 pandemic, the Czech financial system has returned to stable progress after an enormous contraction in 2020.

Manufacturing sentiment has additionally stayed robust, however has slipped from data seen in earlier this 12 months.

Volkswagen’s Spanish unit SEAT plans to increase partial automotive meeting suspensions at its vegetation close to Barcelona properly into 2022 due to the chip scarcity. learn extra

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Reporting by Jason Hovet Writing by Jason Hovet and Jan Lopatka
Modifying by Himani Sarkar and Mark Potter

Our Requirements: The Thomson Reuters Belief Ideas.

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