Marchionne: Every 5th Auto Plant In Europe Should be Closed – The American Way

As dark clouds bunch up over Europe the less healthy of the many European carmakers frantically look for friends that help them get through the hard times ahead. Fiat-Chrysler is "talking to everyone," CEO Sergio Marchionne told Reuters. Marchionne isn't picky when it comes to corralling companions: "We can be an active partner everywhere around the world." "Roughly, we're looking at a number in the neighborhood of 20 percent of installed capacity that may be viewed in terms of being structurally redundant," Marchionne said. I guess he wants (but does not dare) to say that every fifth car plant in Europe should be closed and its workers fired. How does Marchionne want to do this? The American way: "America fixed the problem in 2008 and 2009… Capacity has been taken out and the workforce has become incredibly flexible." In January, Fiat had been rumored to be flirting with PSA, now the French bride seems to be romanced by an American. Marchionne has helpful advice for the couple: "It is key that the situation in Europe is addressed. If the potential Peugeot-GM tie-up becomes reality, I sincerely hope it deals with the overcapacity issue. It has to." Marchionne did not answer the question that is on everybody's minds: How on earth would a Peugeot-GM tie-up address overcapacity?   from The Truth About Cars http://www.thetruthaboutcars.com

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