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Skoda Will Be Closed Until Mid-January

The Czech automaker Škoda Auto, a part of Volkswagen AG, will stop production on December 19 due to recession on the European car market and caused by it fall of demand. The shutdown will likely last until January 11, 2009 according to Jaroslav Cerny, the company’s spokesperson.

This year Škoda Auto, the largest Czech automaker, planned to produce more than 700,000 units, but the falling demand, especially on the Western European markets, will most likely cut the output by approximately 30,000 vehicles or even more. Still, the production number is more than last year.

Mladá fronta daily reported recently that according to Škoda trade union representative Jaroslav Povšík, the company has intention to dismiss 870 employees, which is 3 percent of the total staff number. Though, this information has not been confirmed officially.

So the global crisis reached the Czech auto making industry, although as recently as this October Czech and Slovak automakers planned to raise production numbers, while the majority of major European producers such as Ford, Opel, BMW and Daimler cut output in response to low demand.
The Europeans preferences shifted then towards smaller and more fuel-effective vehicles, but after all ubiquitous economic crisis affected budget brands as well.

Date: 10/12/2008