The Czech Automobile Industry Association (SAP) claims that the coronavirus has cost automobile manufacturers CZK 50bn in revenues, with their suppliers having lost more than CZK 17bn over the past month. In all, SAP estimates that 170,000 new cars would have been produced during the forced shutdown and that 42 percent of companies in the sector are still considering layoffs. Only Hyundai has restarted production, though Škoda Auto is planning to restart production beginning April 27 and TPCA’s lines are to open May 4. The sudden halt in March contributed to an 11 percent fall in automobile output for the first quarter of 2020 to 322,908. March output specifically saw a 36 percent production drop, or 47,452 fewer cars. SAP provided the alarming statistics as background material to its demand that the Antivirus support program for large companies and that commercial loan guarantees be provided. It’s also looking for “adjustments” to be made to the VAT duties of their members in order to help them survive the coming months. Just as importantly, SAP is looking for changes to the rules that are preventing foreign specialists and production employees, without whom restarting production could be delayed or complicated.
