Countries such as Spain have more than 9% of their population employed in the auto manufacturing industry.
Europe’s car market is facing a precipice and the region’s shrinking demand shows little signs of recovery this year, Carlos Ghosn CEO of Renault Nissan, the world’s fourth-largest automaker, told CNBC Tuesday.
“The number one problem is that demand is shrinking and has shrunk by 8 percent in 2012 and continues to shrink in 2013. Capacity is a problem and competitiveness is a problem but these are of second and third magnitude in comparison to the fact that the total market is collapsing,” Ghosn told CNBC.
Amid the glitz and glamour of the 83rd Geneva Motor show, carmakers were in unison about the problems facing Europe with some suggesting the gloom over the European market is here to stay.
via CNBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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