Škoda has a long tradition in our country. It is known for being the largest Czech company by sales volume,but it is also the company that employs the most people.
Just this Thursday, Škoda opened a new factory at its main plant in Mlada Boleslav. This plant is a paint shop and should have 600 to 700 openings. Škoda invested €214.5 millionin this plant. When this investment will be recouped is, of course, calculated in advance. Otherwise, the giant probably would not have gone ahead with it.
Znak Škody
The new paint shop will of course be staffed with robots. But so will the aforementioned number of people. It will now be up to the company to decide who to hire. There are reportsthat they will only hire foreign workerswho are willing to work for minimum wage. But the message is always and everywhere that something new is opening up. Perhaps these messages are being sent by competitors.
So, if production increases, as one would expect, sales must also increase. This is a law of economics and cannot simply be avoided. Therefore, company management must pray that a situation like 1991 is not repeated. In that unfortunate year, 170,000 cars were produced and only 27,000 were sold. But as you can see, the car company did not switch sides.
Škoda veterán
Indeed, there was a risk in building a paint shop half the size of Wenceslas Square. Incidentally, the seven-story building is the tallest in the plant, with an area of 25,094 square meters. What is that square footage? 168 car bodies must pass through its lines in a year. Add to that the fact that nine Skoda models are produced,and it is clear that this strategy is working.
This, of course, increases purchasing power.
Since the salary levels are already evident, I don\’t think there will be a shortage of applicants. However, they could be terribly mistaken. If this happens, of course, their position in the market will become very difficult.