Hyundai executive: Europe needs to close plants
GENEVA (AP) — A Hyundai executive says it's unclear what will happen in the European car market this year because manufacturers still haven't gotten a handle on their overcapacity problem.
In addition to the difficult economy, idle factory floors are weighing on European manufacturers. But stringent labor protections have meant few factories have closed in recent years.
Hyundai Motor Europe's chief operating officer, Allan Rushforth, says the outlook is murky.
He said Tuesday: "We believe there's still capacity to come out of the European market on the part of some west European manufacturers."
The Korean company scaled back its goals for growth in Europe, but it's in a better position than its peers: Rushforth said the factories that serve Europe — in Turkey and the Czech Republic — are at full capacity.