Ford CEO Alan Mulally has sounded a warning over continuing excess capacity for the auto manufacturing industry in Europe.
In an interview with the Financial Times he said that more action was needed from Europe’s carmakers to reduce production capacity. Despite some upturn to the European car market since the middle of last year, he told the newspaper that excess capacity in Europe remains at “dangerous levels”.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Mulally recently told just-auto that he was happy with the progress and turnaround for Ford in Europe. Ford’s European unit is still loss-making in Europe – which has seen its car market slump to a twenty-year low – but the company is aiming to be profitable in Europe by 2015.
Mulally told the FT that the closure of a handful of European factories over the past year was not enough to bring industry capacity down to a sustainable level. “It is not enough. I think that companies need to match their production to demand,” Mulally said.
Alan Mulally will step down as Ford CEO on July 1 when the position will be filled by Mark Fields, current Ford COO.
See also: INTERVIEW: Ford CEO Alan Mulally
