Skoda Auto to temporarily halt production in Czech Republic plants

Volkswagen’s Skoda Auto will temporarily stop production at its Kvasiny plant in the week from June 28 and partly stop production at other plants as well as parts shortage continue, the trade unions at the automaker said.

The date coincides with the automaker’s launching its new mid-size SUV, the Kushaq, in India on June 28, today.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.