Factories in Europe produced at close to 84% of capacity in 2016
- Overcapacities production in Europe (Europe 29 + Turkey) decreased in 2016 to 16%, for a utilization rate of 84%, very close to the 2007 rate of 85%.
- This figure, which is one of the best in the decade, can be explained by the conjunction of two phenomena:
1. The increase in the European market in 2016 (+ 7% for all PC and LUV), which resulted in the production of more vehicles last year.
2. The closure of several factories in 2015 (Bochum, Genk) and the elimination of assembly lines in several others that reduced the capacity of the European car industry last year.
- Exports remained at a good level in 2016, and thus had no negative influence on European production volume . Nor has there been any plant construction on the continent to increase in European car industry capacity.
- In 2017, the European market should continue to increase and no new plant capacity will be operational (Nitra's Jaguar Land Rover plant will be completed in 2018). So overcapacity is expected to continue to decline in 2017- it could reach 14%, the lowest figure ever recorded in Europe.
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