Concept and implementation of capacity adaptation of southern european subsidiaries

While German luxury car manufacturers and Volkswagen were able to improve their results and increase their market shares, mass producers such as Renault, Peugeot or Opel continue to incur losses running in billions. The difference lies in the dependence of respective markets. BMW, Daimler and Volkswagen are benefiting from the growth of export markets, while other manufacturers are heavily dependent on the European market. It has been declining for years. In 2013, a further decline is expected in Europe before the bottom is reached.

In the medium term, a significant increase in sales is unlikely in Europe, and especially in the southern European countries. Currently, only around 70 percent of the plants in Europe are working at full capacity. Consequently, cost-covering production is not possible. Adapting capacities in Europe is therefore an important alternative for car manufacturers and a logical consequence for suppliers.