Unavoidable Plant Closures
The European car industry, except for German leading brands, is in great difficulty. In India this manufacturing sector is also of concern. Latest available data show that the production overcapacity in Europe's car industry reached 3 million. Moreover between 2008 and 2013 production has fallen from 16 to 12 million cars. In 2012 car sales in Europe reached their lowest level in 17 years. And the market continues to fall. It's true that some car manufacturers are responsible for the strategic errors they made as regards the range positioning. But they are not responsible for the slump. This extremely serious situation is causing a direct threat to the viability of many medium-sized plants. And we must stress that this sector accounts for about 12 million jobs. Car sales are also declining in India and for the 6 consecutive month. Yet it is one of the largest and fastest growing industry. This sector has grown over 15% on average over the last four years. The economic slowdown which affects India and the high interest rates are amongst the main reasons given to explain this difficult market situation. In any event and in these two areas of the world a recovery in production due to sluggish demand will take time.