The European car market is going to be tough for five more years, Renault CEO Carlos Ghosn predicted Tuesday, and the only way for struggling carmakers to survive is to push into other markets.
Europe's carmakers are finding it harder to recover from the collapse of the car market in 2008 than some of their rivals in the U.S. and Asia. Europeans are buying fewer new cars as their economies grow weakly, or not at all. On top of this, automakers are struggling with idle production lines and overcapacity.
Building a car in Europe is more expensive than in many other parts of the world thanks to rigid labor agreements that drive up wages and benefits. Those same agreements also make it difficult to transfer jobs elsewhere.
Read more: Renault CEO: Carmakers must push outside Europe | Boston Herald
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