The European automotive industry needs to cut capacity by 10 to 20 percent in response to sagging consumer demand which will continue up to 2014, Fiat Chief Sergio Marchionne said Wednesday.
“If the volume stay where they are, I think if You take 10 to 15 percent of capacity, perhaps 20 percent of capacity in Europe,” the car will achieve sustainable levels of production, Marchionne told reporters.
Asked what the European demand forecast for vehicles, Marchionne said he expects to “stay flat until 2014.”
Such a dramatic reduction in capacity–that would require a mass JOB CUTS at a time when Europe was shaken by economic turmoil and have not yet resolved the debt crippling Government–would be very difficult to achieve, he said.