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Czech Skoda says strike to halt Octavia on Wed-CTK

PRAGUE, June 27 (Reuters) - Skoda Auto, the Czech unit of German car maker Volkswagen , said on Friday it will be forced to halt production of its Octavia sedan on Wednesday if strikes at German car-parts suppliers continue.

The CTK news agency quoted a Skoda spokesman as saying production at another line, which makes the compact Fabia model, can last until Friday before it can no longer function.

Engineering and steel workers in eastern Germany have been on strike for over three weeks, demanding similar working standards to their western colleagues.

Negotiations between engineering union IG Metall and employers restarted on Friday with hopes for a deal to end the strike, but Volkswagen said on Friday it had already stopped production of its top-selling Golf model at its main Wolfsburg plant in western Germany for lack of parts from the east.

Skoda officials were not immediately available to confirm the report, but they have previously said at least two of three production lines at the country's largest company are in jeopardy. Skoda is an engine of the Czech economy and it expected a recovery of domestic sales this year.

The disruption would knock down daily production by 2,000 units if it occurs. Production of the limousine model, the Superb, should not be hit.