EUROPEAN AUTOMOTIVE INDUSTRY OVERCAPACITY

December 2011 was a terrible month for the European Automotive Industry. Car registrations in EU27 countries were down by 6,4% from previous year. France with -17,7% and Italy with -15,3% were the most depressed markets.

FIAT CEO Mr. Sergio Marchionne, has declared in a USA conference that Europe has to reduce production overcapacity by 10% to 20% , because 2011 ends with 13,1 Million cars sold from the 16 Million cars sold in 2007. Car registrations in EU registered the third consecutive yearly decrease.

The bad perspectives in the automotive industry will push down prices for HRC steel, despite Arcelor Mittal intentions to increase prices.