Skoda plans to shut production in all three of its plants in the Czech Republic

Article by Christian Andrei, on August 29, 2010

The key supplier of Volkswagen AG Czech unit Skoda was damaged by the recent floods, prompting the carmaker to shut down production in all three of its plants in the Czech Republic.

Flash floods ravaged the central European state in the north of the country over the weekend, costing hundreds of millions of dollars in damage and taking at least three lives.

Deliveries for the carmaker were disrupted since Grupo Antolin Bohemia, which supplies car ceiling panels, had its plant flooded in the town of Chrastava, 120km (about 75 miles) north from the capital Prague.

Skoda spokesman Jaroslav Cerny said that starting Thursday, production will be stopped in Skoda's Vrchlabi and Mlada Boleslav plants, which build the Fabia subcompact and Octavia compact.

He said that an extra shift on Saturday in the Kvasiny unit will also be cancelled. The Kvasiny unit builds the Yeti small SUV, Roomster small minivan and Superb mid-sized model.

Production is expected to resume on Monday. These factories have a combined production capacity of 2,500 cars a day. Cerny declined to provide cost figures of the outage.

He also didn't say if Skoda will be able to catch up with production this year. Skoda is the Czech Republic's second-largest company by sales in this country where cars and car parts production accounts for almost 70% of the central European country's gross domestic product.

Topics: skoda, factory, plan

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