Czech automotive industry under pressure
09 Apr 2020 12:23 Economy
Vladimir Dobos leads the Port of Hamburg Representative Office in Prague. In view of the special situation, he provides up-to-date information on the situation in his market region, the Czech Republic.
The Czech automotive industry, with a total of 170,000 employees, is one of the most important industries in the country. According to official figures, it is responsible for almost a quarter (23 percent) of total Czech exports. For many exports, companies in the Czech Republic use the excellent hinterland connection of the Port of Hamburg by rail. The 140 member companies in the Czech Automotive Industry Association (AIA CR) generate a total annual turnover of 1 trillion crowns (40 billion euros). According to AIA CR a third of the companies had to temporarily shut down operations due to the corona pandemic. This difficult situation endangers up to 150,000 workplaces and, as a result, around eight percent of Czech GDP.
The association AIA CZ demands quick measures to ensure the liquidity of the affected companies. The support services, especially for exporters, should be extended to the third quarter. In coordination with the neighbouring countries, AIA CZ proposes to cancel the existing entry restrictions at the Czech borders for international professionals and commuters.
The Czech Republic's extensive emergency law has now been extended until 30th April. The Czech opposition parties used their votes to prevent the extension until 11th May, as requested by the Prime Minister and his minority cabinet.
The Czech automotive industry, with a total of 170,000 employees, is one of the most important industries in the country. According to official figures, it is responsible for almost a quarter (23 percent) of total Czech exports. For many exports, companies in the Czech Republic use the excellent hinterland connection of the Port of Hamburg by rail. The 140 member companies in the Czech Automotive Industry Association (AIA CR) generate a total annual turnover of 1 trillion crowns (40 billion euros). According to AIA CR a third of the companies had to temporarily shut down operations due to the corona pandemic. This difficult situation endangers up to 150,000 workplaces and, as a result, around eight percent of Czech GDP.
The association AIA CZ demands quick measures to ensure the liquidity of the affected companies. The support services, especially for exporters, should be extended to the third quarter. In coordination with the neighbouring countries, AIA CZ proposes to cancel the existing entry restrictions at the Czech borders for international professionals and commuters.
The Czech Republic's extensive emergency law has now been extended until 30th April. The Czech opposition parties used their votes to prevent the extension until 11th May, as requested by the Prime Minister and his minority cabinet.
Czech automotive industry under pressure