Car industry in danger

A dip in demand is putting the Czech and Slovak car industries under increasing pressure, the liberal newspaper Mladá fronta Dnes writes: "It began in spring with the rise in oil prices. Now this is being compounded by the financial crisis. Millions of people are no longer sure about their future. And spending on cars is the area where people cut their budgets first. ... In the Czech Republic 120,000 people are directly employed in car production, and a further 100,000 indirectly. This year for the first time more than a million cars will roll off the assembly lines, and soon that figure could go up by half a million. But at Škoda Auto, the flagship of the Czech car industry, the entire production will be halted for the last week of October. There are fewer orders than expected. ... Auto industry suppliers have also confirmed a drop in orders. Some firms are therefore beginning to cut jobs. At the moment the numbers are still reasonably low, but if the crisis deepens tougher measures are likely to be adopted."

» more information (external link, Czech)
More from the press review on the subject » Corporations, » Economic Policy, » Czech Republic, » Slovakia