Chrysler’s Machionne says auto industry must reduce factory capacity in order to survive
By APWednesday, January 13, 2010
Chrysler CEO: World supply of cars outpaces demand
DETROIT — Chrysler Group LLC Chief Executive Sergio Marchionne says the global auto industry must reduce factory capacity in order to survive, especially in Europe.
He told the Automotive News World Congress on Wednesday that the global auto industry can build 94 million cars and trucks a year. But that’s 30 million more than it can sell.
Bankruptcies and economic struggles have forced cuts in North America, but European manufacturers have not closed plants, often because they are paid by governments not to, he said.
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