Retailers, consumers and prices
When DelphiCEO Rodney O’Neal talked of losing weight and quitting smoking, it was his recipe for getting the global auto industry back on track and not a New Year’s resolution.
In his first public comments since the auto parts maker emerged from a four-year bankruptcy in October, O’Neal said the global auto industry will need to shrink to match consumer demand and stop pining for the good ‘ole days when demand was much higher.
“In terms of our industry … we are just simply overweight, to be honest we are just fat,” he said at the Automotive News World Congress conference in Detroit. “We are too bloated and we absolutely do need the latest fad from a diet perspective to get right-sized.” The conference was held in conjunction with the Detroit auto show.
O’Neal cited CSM data, saying the industry globally has 86 million units of manufacturing capacity, about 30 million more than where demand is currently. And the overcapacity problem is even worse in the supplier sector.