Global

Details

  • Industry: Automotive
  • Type: Survey report
  • Date: 1/5/2013

Growth and globalization: keeping a lid on capacity 

Capacity lid
A significant proportion of respondents believe sales and production will decrease across Europe and Japan over the next 5 years. It is a completely different picture in the BRICs, while hopes are also high for two new Asian economies – Indonesia and Malaysia – as well as for Mexico and South Africa. Yet these growth markets will not halt industry overcapacity– something that automakers are uncertain how to address effectively.

The elusive challenge of overcapacity

Over 50 percent of respondents feel Japan, Germany, US, Korea, Spain and France all have a high risk of overcapacity. There is no common agreed solution to overcapacity, although a quarter believe that consolidation, joint ventures or alliances could help resolve the problem. Only France appears to favor cutbacks in production.


"Twenty-one percent of European and Japanese respondents believe that increasing vehicle exports will help solve overcapacity."


Countries facing significant overcapacity

Strategy against overcapacity Germany Japan France Italy UK USA
Industry consolidation/ joint ventures/alliances
Increase vehicle exports
Government intervention
Incentives from automakers
Cutbacks in production
Raise brand profile
Increase contract manufacturing

 0%  1-10%  11-20%  21-25%  >25%

Source: KPMG’s Global Auto Executive Survey 2013

 

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