Volkswagen’s Czech unit, Skoda Auto, may stop production for two days this month because of falling demand following the end of the vehicle scrappage subsidy in Germany.
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A Skoda spokesman told Reuters that, although no definite decision to scale back production had been taken, “it is being considered as part of an annual stock survey”.
Car exports are a substantial growth driver for the Czech economy and the scrap subsidy scheme, which aimed to prop up car sales by giving consumers money for trading in their old cars, had helped to boost industrial output in recent months.
Demand for the Fabia, Skoda’s most popular model, was hit the most following the end of the scheme.
The spokesman added that any stoppage may be linked with a public holiday at the end of October.
Skoda is the country’s largest company by sales. Other major car producers include a joint Toyota-PSA plant and a new Hyundai factory.
