Monday, Dec 08, 2008
interesting article about overproduction
japantimes: Japan, Germany set to pounce on seismic shifts in auto industry
For several years, there's been significant overcapacity in car production. In 2006, 70 million cars were made worldwide but only 65 million found buyers.
In fact, according to CSM Worldwide, an automotive research firm, the average production ratio for all the world's auto plants was only 68 percent in 2000, far below the 80 percent needed to achieve a sustainable profit. By 2005, output efficiency had risen to 76 percent but was still below sustainable levels. Thus, the need for an industrywide revamp has been brewing for sometime — especially in developed markets like the United States.
Another structural reason behind the slowdown is the combination of high ownership rates and rising quality
Posted by mark @ 11:55 AM (197 views) Add Comment
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