European manufacturers used 85% of their capacity in 2017
- Overcapacity in Europe (Europe 29 + Turkey) decreased further in 2017, falling to 15% of all European capacity, a utilization rate of 85%, the same rate as in 2007 which had been the best of the past decade. This good figure is explained by:
1. The rise in the European market, which continued in 2017 (+ 3.3%), allowing more vehicles to be produced last year.
2. No new factories construction in Europe in 2017, and existing facilities responding without difficulty to demand.
3. European exports remaining at a good level in 2017 thanks to a world market up 2.3%.
4. Recent plant closures in Europe yielding the expected results (capacity reduction).
- If the European market continues to increase in 2018 and the level of European exports is maintained (a priori, the world car market should continue to grow this year, of the order of 2 to 3%), overcapacity of European car factories this year should drop to only 14% of all European capacities, the lowest figure recorded in the last twenty years.
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