Aim: to show the effects of perceived over-capacity in one industry An earlier case considered the effects of over-capacity in global car manufacturing. This case shows the effect in Europe, where over-capacity is seen to be a significant problem. Companies want to increase the utilisation of their own facilities, but this is difficult in a competitive market. The path taken by the industry is to reduce the number of companies working, so that production is concentrated into fewer more efficient operations. The direct result is a series of mergers, takeovers and closures.
