VW's Czech Skoda eyes post-scrappage output cut

01 October 2009 @ 04:40 am EDT

Volkswagen's Czech unit, Skoda Auto, is considering halting production for two days in October after demand fell following the end of a scrappage subsidy in Germany, a spokesman said on Thursday.

The sign VW-Porsche is pictured at the back of a VW-Porsche 914 car at a dealer in Bochum May 7, 2009. The car was a joint production of Volkswagen and Porsche between circa 1969 and 1976.

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Car exports are a substantial growth driver for the small and open economy and the scrap subsidy scheme, which aimed to prop up car sales by giving consumers money for scraping their old cars, had helped to boost industrial output in recent months.

"It is not definitive yet, it is being considered as part of an annual stock survey that must take place in the factory, which always takes place at the end of October," said Jaroslav Cerny, Skoda spokesman.

"So we want to link (the stoppage) with the public holiday on Oct. 28," he said adding the days off would be Oct. 29-30.

Demand for the Fabia, Skoda's most popular model, was hit the most following the end of the scheme.

Skoda is the country's largest company by sales. Other major car producers include a joint Toyota-PSA plant, and a new Hyundai factory.

(Reporting by Jana Mlcochova; editing by Simon Jessop)