European Auto Factories Will Run Under Capacity for at Least the Next 3 Years

The analysts at IHS Automotive are predicting that European auto factories will run at under capacity for at least the next three years. To cope, automakers will have to either close factories or move more production to Europe to take up the unused capacity.

IHS estimates that 85 of Europe’s 160 auto factories are operating at 70% capacity or less. Automakers need to run factories at a minimum of 75% capacity just to break even.

RenaultRenaultFrance, 1898 > present189 models
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17 videos
-NissanNissanJapan, 1932 > present159 models
6957 photos
12 videos
is moving production of the MicraNissan Micra Gen.4Japan, 2010 > 201645 versions
95 photos
from India to Renault’s factory in Flins, France.

AudiAudiGermany, 1909 > present83 models
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27 videos
is moving production of the Q3Audi Q3Germany, 2011 > present66 versions
147 photos
to Seat’sSeatSpain, 1950 > present29 models
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Martorell, Spain, factory.

FordFordUnited Kingdom, 1909 > present33 models
3718 photos
5 videos
, OpelOpelGermany, 1863 > present85 models
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8 videos
, PSA PeugeotPeugeotFrance, 1882 > present120 models
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7 videos
-CitroënCitroënFrance, 1919 > present94 models
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11 videos
and VolvoVolvoSweden, 1927 > present49 models
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6 videos
have all closed factories in Europe already. However, new factories in Central Europe and Eastern Europe have taken up that lost capacity, which means that total European auto capacity has changed little in the last 10 years.

The European Automotive Manufacturers’ Association just reported that EU auto registrations have fallen to a 20-year low.

Source: Automotive News Europe