Skoda and Toyota production affected by chip shortage

According to foreign media reports, Skoda will cancel several production shifts before the arrival of its two-week annual vacation due to a continuing shortage of chips affecting car production.

Skoda union said that the annual vacation time is in the first two weeks of August, but from July 28, some production shifts will be cancelled. Skoda, which cancelled some production shifts in June, had no immediate comment on the news.

At present, automakers around the world are struggling because of a serious shortage of chips. Japanese carmaker Toyota also said on July 22nd that it had suspended production at its three plants in Thailand earlier this week due to parts shortages.

Toyota Thailand suspended production at its (Ban Pho) plant in Banpo on July 20 and at its Sanlong (Samrong) and Gateway plants on July 21, the company said in a statement. According to Toyota's official website, the company has an annual production capacity of 550000 vehicles in Thailand.

A number of novel coronavirus cluster infections occurred at Thai factories in June, raising concerns about the country's exports. Thailand is the fourth largest car assembly and export centre in Asia, with the auto industry accounting for about 10 per cent of Thai GDP and manufacturing jobs.

Toyota also said on July 22nd that it would stop production at a plant in (Aichi Prefecture), Aichi Prefecture, Japan, from July 29 to 30 and August 2 to 4 because of parts shortages.