PRAGUE – The difficulties faced by the German automotive company Volkswagen are already significantly impacting Czech suppliers. Due to the limited production of the group, companies have experienced a decline in orders of tens of percent in recent months. According to experts, further complications may arise from the planned reduction of the car manufacturer's model range, which could reduce demand for some components produced in the Czech Republic. Petr Knap, a strategic advisor in the automotive industry, told ČTK today that the Volkswagen Group, including the domestic Škoda Auto, sources parts from more than 200 Czech suppliers.
The developments at the German group therefore have a direct impact on a significant part of the Czech automotive industry, which is one of the most important sectors of the national economy. "The decline in orders is already evident among Czech suppliers. Some companies are reporting a decrease in demand of tens of percent, which has an impact on production, investments, and employment," said Knap. He added that the situation could worsen further if Volkswagen resorts to a more significant reduction in the number of models produced.
In recent years, Volkswagen has faced rising costs, increased competition, and slowing sales in some markets. The company is therefore looking for ways to increase production efficiency and reduce costs. Part of these measures may include reducing the model range, which would subsequently lead to a smaller need for certain parts and components. For Czech suppliers, dependence on the Volkswagen Group represents a significant risk. Many companies are heavily reliant on orders from this group, so even a relatively small decrease in the company's production can affect their financial performance. According to experts, some companies are already looking for new customers and trying to diversify their orders to reduce their reliance on a single customer.
The automotive industry is an essential pillar of the Czech economy. It employs hundreds of thousands of people and contributes significantly to the country's exports. Therefore, any problems faced by major car manufacturers like Volkswagen quickly spread throughout the entire supply chain and can have a broader impact on economic growth. Experts warn that the current situation is part of wider changes in the European automotive industry. The transition to electric mobility, pressure to reduce costs, and changing customer demand are forcing car manufacturers and their suppliers to adapt their production strategies. Therefore, it will be important for Czech companies to invest in innovation, new technologies, and expanding their customer base in the coming years.