Fiat CEO: European Commission must tackle overcapacity in Europe image

The European car market will not really recover without an EU-led coordination of capacity cuts, Fiat and Chrysler CEO Sergio Marchionne said.

Marchionne, who is also chairman of the European automakers’ association ACEA, has repeatedly called for coordinated action in Europe on closing plants and cutting jobs.

“I am concerned that if we don’t find a collective will to resolve this at a European level this is going to become a permanent crisis,” Marchionne was quoted as saying by Reuters. He added that the European Commission should coordinate cuts.

“If the French government were to help one specific carmaker and were not to help us or another carmaker, it would breach the rules of the European treaties. It is better left to the European Commission, whose primary responsibility is the single market. If it doesn’t intervene now it will violate its obligations to the single market,” Marchionne added.

The ACEA chairman has faced stiff opposition from rival carmakers, especially from Volkswagen, which is also a member of the industry group.

Renault and Nissan chief Carlos Ghosn said last month he saw zero chance of a government-led restructuring of the auto industry in Europe. ACEA said sales have fallen in Europe for the past five years. New car registrations are also likely to be down by between 8 and 10 percent this year.