Latest updates as semiconductor chip crisis cripples industry

Latest updates as semiconductor chip crisis cripples industry

Volkswagen Group

Skoda’s Christmas break will be extended until 10 January because of disruptions to parts deliveries, according to unions at the manufacturer. The firm was producing at between 75-80% capacity at the start of the month but operations will now halt.

Workers will take leave from 23 December. The extension will not count as a holiday, meaning workers will be compensated with 80% of their wages for the remaining period, Automotive News Europe reports.

Skoda’s Mladá Boleslav plant produces a significant portion of the firm’s model range, including the Fabia, Kamiq, Scala, Karoq, Octavia, Enyaq. 

Production at Volkswagen’s Emden plant in Germany is on hold for the rest of the year because of a shortage of microchips and electronic components, reported Automobilwoche, sister publication to Automotive News Europe

Like Skoda, output will resume on 10 January. Both the Arteon and Passat are built at Emden, plus ID 4 production is expected to begin there next year. 

The equivalent of 70 working days will have been lost by the end of the year due to short-time working, a Volkswagen spokesman told Automobilwoche, with the cut in production described as “massive”. 

Seat will also cut production and close its Barcelona plant in Spain for five days in December, due to impacts caused by global supply disruption, Automotive News Europe reports. 

“The crisis of global semiconductors supply that affects all the automobile industry will force us to idle the Martorell plant on 17, 20, 21, 22 and 23 December,” Seat said in a statement. 

The decision comes as demand for Seat and its Cupra performance brand have returned to pre-pandemic levels.