Alan Mulally, chief executive of Ford, has warned that European carmakers need to cut back further the numbers of cars they can build as excess capacity on the continent remains at dangerous levels.
Idle production lines and underproductive factories have plunged almost all of Europe’s big carmakers into billion-dollar losses in recent years after annual sales on the continent fell by about 4m cars between 2007 and 2013.
In an interview with the Financial Times, Mr Mulally said that the closure of a handful of European factories over the past year was not enough to bring capacity down to a sustainable level.
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