The Czech car manufacturer Škoda has announced that it will reduce production this year due to the international financial crisis, reported the Czech news agency ČTK.
The company’s management has decided to limit production in all sectors on September 26 and October 31, with the exception of the new luxury model, spokesperson for the Czech company Jaroslav Cerny stated on Monday. Production will be reduced by about 2,500 cars and is expected to result in a decrease in inventory."The consequences of the financial crisis adversely affect the European market. As the largest exporter in the Czech Republic, we will not be able to avoid these negative impacts, which are further exacerbated by the strong Czech koruna. This is the reason for reducing our production on the specified two days", Cerny said. No new measures are currently planned, he added.
Škoda originally planned to produce about 759,000 cars this year, compared to last year’s approximately 661,000. The company has already recorded problems in the first half of this year due to the high exchange rate of the Czech koruna, reflected in a nearly 10 percent drop in net profit year-on-year, to 7.1 billion koruna (294.2 million euros), despite an increase in sales revenue. Škoda confirmed its position as the largest Czech exporter last year, with a share of 7.5 percent of total exports. It exported cars, spare parts, and other components worth 184.9 billion koruna. (H)
