Car manufacturers will be forced to shut down a huge number of plants and some of their low volume name plates. The car industry has moved into a structural and not into a financial crisis. Since years, worldwide car sales has been heavily supported by tremendous incentives. The US and Europe will never have peek production volume again as we had in the past.

Todays global production capacity is around 95 million cars while the approximate utilization will be 55 million cars this year. Many manufacturing facilities, engineering and design centre as well as some name plates will become redundant. This drastic and dramatic OEM consolidation will squeeze the supplier industry in a real struggle for survival. Survivors will be the technological and economical leaders and some niche suppliers.

European government scrape rates regulations in some countries have started signalizing an apparent recovery of the European market. Unfortunately once this governmental incentive program comes to an end, the car manufacturers, dealers, suppliers will fall into a new black hole.