Metalnewsnet 8 Jan:

Executives at car makers and their suppliers are concerned the world's major auto industries are still positioned to produce too much despite years of cutbacks, a KPMG survey suggests.

In the survey of 200 senior leaders at global automakers and suppliers, almost 90 per cent of North American respondents said overcapacity is still a problem despite numerous closures and tens of thousands of jobs lost in recent years.

According to KPMG's 2010 Global Auto Executive Survey. About one-third of those responding estimated U.S. overcapacity was in the 11 to 10 per cent range and a further one-third said it was in the 21 to 30 per cent range.

Of the 200 respondents, 30 per cent were based in the Americas including the United States, Canada, Mexico and Brazil.

KPMG says similar numbers exist for both Western Europe and Japan, which are home to the world's other major developed auto industries.

In Western Europe, 81 per cent of respondents were concerned about overcapacity while 75 per cent of Japanese respondents said they were concerned.

(from cp)