Skoda says will not cut its production in December image

A newspaper report said two days ago that Skoda planned to reduce its production capacity at the end of the year, but the Czech brand said it does not have such intentions.

According to a report from the Czech newspaper Mlada Fronta Dnes, the low demand in Eastern Europe markets and the brand’s decreasing sales are forcing Skoda to take some drastic measures to cut costs and make plans to scale down its production capacity by reducing work shifts and not holding Saturday shifts as in previous years. VW’s Skoda said on Wednesday that after consideration it would not introduce additional weekend shifts in December, but it was not cutting production. “Having considered extra weekend shifts towards the end of the year, Skoda Auto has decided that these measures will not be necessary,” Skoda said in an emailed statement to Reuters. “This is not about production cuts; production will be going ahead according to plan.”

In its statement, Skoda said its decision not to increase the number of year-end shifts was not related to the emissions scandal at its parent group Volkswagen. The shift reduction will involve cancelling more than three shifts on the Fabia and Rapid production lines in November, the paper said, with yet unknown effects on Skoda’s total output for this year.

Skoda’s October sales report indicated that global vehicle deliveries fell 2.7 percent to 85,000 in October, from 91,000 units in the similar period of 2014, as deliveries on the Russian market were 38 percent down. In Western Europe, Skoda sales dropped 1.9 percent, while the brand’s volume in its Eastern European markets, excluding Russia, was down 11 percent.

Via Reuters