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Huge manufacturing overcapacity in the global auto industry.

12/31/2008

During the boom years manufacturers kept building new plants which suggested overcapacity even at the markets levels of the time. Now with the market sales down by 30-40%, there is huge manufacturing overcapacity. As much as 34 million vehicles or 100 plants may no longer be needed, if sales remain at the new level of 60 million vehicles wordwide for years. The situation in 2009 and 2010.

Grouped Articles

Automakers' Overcapacity Problem

BusinessWeek 12.31.2008

Wanted: new customers

Economist 10.01.2009

Car Sales Are Stuck in Slow Lane

Wall Street Journal 06.29.2010

Car industry: Danger ahead

Economist 01.15.2011

Mean Street: Why The New GM Is Destined To Lose

Wall Street Journal 02.28.2011


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