By on April 2, 2012

It must be the grand plan to make Iran walk or ride mules, because the alliance between GM and PSA is not about reducing over-capacity. This is what PSA told just-auto today. Confessed a PSA spokeswoman:

“We do have some over-capacity in Europe – around 20% over-capacity. The alliance is not here to tackle this problem – each company will tackle this problem – GM and Opel/Vauxhall will deal with the problem on its side. Regarding plants, we say the life of a plant is linked to the life of products we make.”

That makes us sleep better, because we had been racking our brains to see how joining one company that is bursting with over-capacity to another company that is bursting with over-capacity will reduce over-capacity. Now we know: It won’t.

 

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