According to overseas media reports, KPMG said that the global automotive industry needs to further reduce its annual production capacity by 4 million vehicles, so that the level of excess capacity can be reduced to below 20%. The annual survey report said that the issue of excess capacity is "the biggest problem facing the automotive industry." The report on the attitude of auto industry executives concluded that the vast majority of respondents were "over optimistic." "75% of the respondents claimed that the level of excess capacity is less than 20%, but we believe that the actual level is about 25%," said Mike Stevenson of the KPMG automotive industry in the UK. The KPMG study pointed out that most of these erroneous optimism are related to China. Although China has a series of new investment in the auto industry, two-thirds of executives do not claim that China does not have excess capacity, which means that the level of excess capacity is below 10%. However, as the government sought to reduce the risk of economic overheating, China's booming new car market slowed down last year. "Although we expect sales to increase in the next few years, excess capacity is still a problem in the next 10 years." The survey concluded that "even if the estimated sales of 3.1 million units in 2007 will still mean that the utilized production capacity Less than 60%.†Although several automakers have begun to address the problem of overcapacity, Steventon said: “It is not yet clear whether these efforts are enough to bring supply and demand back to balance to improve profitability.†The survey considered The restructuring actions taken by the automotive industry, such as the reduction of 12,000 jobs by General Motors in Europe, are expected to reduce annual production by at least 200,000 vehicles. The survey also revealed that optimism about the ability of European manufacturers to increase their global market share is waning as automakers in South Korea and other Asian countries expand significantly. The survey found that a quarter of senior executives now believe that the market share of European brands is declining. In 2002, this proportion was only 9%.
Sufficient overcapacity in global automotive production capacity to reduce production by 4 million vehicles
According to overseas media reports, KPMG said that the global automotive industry needs to further reduce its annual production capacity by 4 million vehicles, so that the level of excess capacity can be reduced to below 20%. The annual survey report said that the issue of excess capacity is "the biggest problem facing the automotive industry." The report on the attitude of auto industry executives concluded that the vast majority of respondents were "over optimistic." "75% of the respondents claimed that the level of excess capacity is less than 20%, but we believe that the actual level is about 25%," said Mike Stevenson of the KPMG automotive industry in the UK. The KPMG study pointed out that most of these erroneous optimism are related to China. Although China has a series of new investment in the auto industry, two-thirds of executives do not claim that China does not have excess capacity, which means that the level of excess capacity is below 10%. However, as the government sought to reduce the risk of economic overheating, China's booming new car market slowed down last year. "Although we expect sales to increase in the next few years, excess capacity is still a problem in the next 10 years." The survey concluded that "even if the estimated sales of 3.1 million units in 2007 will still mean that the utilized production capacity Less than 60%.†Although several automakers have begun to address the problem of overcapacity, Steventon said: “It is not yet clear whether these efforts are enough to bring supply and demand back to balance to improve profitability.†The survey considered The restructuring actions taken by the automotive industry, such as the reduction of 12,000 jobs by General Motors in Europe, are expected to reduce annual production by at least 200,000 vehicles. The survey also revealed that optimism about the ability of European manufacturers to increase their global market share is waning as automakers in South Korea and other Asian countries expand significantly. The survey found that a quarter of senior executives now believe that the market share of European brands is declining. In 2002, this proportion was only 9%.