Crunch prompts more production cuts at Škoda

CzechNews
5. 11. 2008 7:50
Škoda Auto reduces target by another 18,000 cars, plans more production breaks
Škoda is revising production tragets to offset declining demand.
Škoda is revising production tragets to offset declining demand. | Foto: Aktuálně.cz, Škoda Auto

Prague - The largest Czech industrial manufacturer, Škoda Auto, has announced plans to reduce this year's output by another 18,000 cars in a reaction to the declining sales of new cars around the world.

The company has scheduled production brakes for November and December. "[The breaks] will take place in different plants at different times and will cut the output by 18,000 cars," said Škoda spokesman Jaroslav Černý.

The measure won't affect the production of the executive model Superb.

The announcement comes only two days after Škoda employees came back to work after all production was suspended for nine days starting Saturday 25 October. The break reduced the overall output this year by 13,000 passenger cars.

But now the management says the looming recession abroad requires further cuts.

The executive board has decided to suspend the assembly of some models for more than a week. This is especially the case of the Roomster, the production of which will stop for a total of 12 days in November and December.

The production breaks at the largest Czech industrial manufacturer will also reduce the employees' pay. Last week's break reduced monthly paycheques by 25 percent on average.

The measure may be even more damaging for a number of Škoda's sub-suppliers.

Still, the production cuts at Škoda Auto are relatively small compared with steps taken by some carmakers abroad.

 

Právě se děje

Další zprávy