EU carmakers must be more competitive

VW Tiguan cars are pictured in a production line at the plant of German carmaker Volkswagen in Wolfsburg, March 7, 2012. REUTERS/Fabian Bimmer (GERMANY - Tags: TRANSPORT BUSINESS INDUSTRIAL)

VW Tiguan cars are pictured in a production line at the plant of German carmaker Volkswagen in Wolfsburg, March 7, 2012. REUTERS/Fabian Bimmer (GERMANY - Tags: TRANSPORT BUSINESS INDUSTRIAL)

Published Mar 23, 2012

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European auto companies must become more competitive, says Volkswagen board member Christian Klingler, while also dismissing talk that Europe's auto industry suffers from overcapacity.

Klingler told a news conference in Paris on Thursday: “The debate about overcapacity is not the right one, the debate must address competitiveness.

He was referring to recent calls by the heads of auto groups PSA Peugeot Citroen and Fiat that Europe had too many factories producing a surplus of cars.

“Don’t transfer responsibility to Brussels.”

Fiat chief executive Sergio Marchionne repeated his belief this week that Europe should reduce auto production capacity by 20 percent.

Peugeot head Philippe Varin, whose troubled auto group is entering a tie-up with US giant General Motors, has called on the European Union to help auto companies restructure, an invitation for state help Klingler deplored.

“I regret this debate that consists of transfering the responsibility to Brussels,” Klinger said. “Frankly, Brussels has nothing to do with it.”

Volkswagen earlier this month posted 2011 sales of €159.3 billion(R209 billion) - up 25.6 percent from 2010 - making it the new No.2 carmaker worldwide, - AFP

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