Once the butt of jokes, Czech-made Skoda cars have won over Brits, but the UK’s exit from the European Union could deal a heavy blow to the brand and the entire Czech economy.
April 14,2019
Once the butt of jokes, Czech-made Skoda cars have won over Brits, but the UK’s exit from the European Union could deal a heavy blow to the brand and the entire Czech economy.
Britain is the fifth largest export market for the Czech Republic, an EU member of 10.6 million people heavily dependent on overseas shipments, especially cars.
The EU has given Britain until October 31 to organise an orderly departure, but a no-deal hard Brexit that would slap high tariffs on imports like cars is still possible.
Controlled by Volkswagen since 1991, Skoda exports some 80,000 cars to Britain a year, almost 10 percent of its annual output.
In an emailed statement, Skoda told AFP it was « worried and getting ready for all scenarios » and called for a « solution acceptable for all parties », but declined to elaborate.
Radek Spicar, vice-president of the Czech Confederation of Industry, went further, warning that the company might suffer a heavy blow.
« A hard Brexit would mean 10 percent import duties slapped on cars, and that would hurt, » he told AFP.
« It would stifle demand for cars. Companies like Skoda wouldn’t collapse, but they would lose part of an important market, » Spicar added.
Despite the grim outlook, Skoda raised its first-quarter sales to Britain by 3.6 percent against a year ago to 22,200 units, company spokesman Zdenek Stepanek told AFP.
Spicar pointed out Britain was also a « symbolic » market for the make, which has come a long way from being the butt of jokes to one of the most respected makes there.
