Countries such as Spain have more than 9% of their population employed in the auto manufacturing industry.
Europe’s car market is facing a precipice and the region’s shrinking demand shows little signs of recovery this year, Carlos Ghosn CEO of Renault Nissan, the world’s fourth-largest automaker, told CNBC Tuesday.
“The number one problem is that demand is shrinking and has shrunk by 8 percent in 2012 and continues to shrink in 2013. Capacity is a problem and competitiveness is a problem but these are of second and third magnitude in comparison to the fact that the total market is collapsing,” Ghosn told CNBC.
Amid the glitz and glamour of the 83rd Geneva Motor show, carmakers were in unison about the problems facing Europe with some suggesting the gloom over the European market is here to stay.
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