The merger of Chrysler and Daimler-Benz was motivated by the enormous excess auto capacity -- worldwide, probably 20 million units.

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Thomas Choi, an analyst for Samsung Securities, estimates that world auto manufacturing capacity now is 40% more than demand.

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As we have mentioned in previous articles, the European auto industry is plagued with overcapacity issues, but the labor unions and the governments have made it enormously difficult for the auto companies to reduce capacity in order to protect jobs.

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The purchase added 7 million tons of steelmaking capacity, which strengthened USS in higher-end auto, container and construction products.

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America's government is working hard to revive markets for securitised debt, aware that banks lack the balance-sheet capacity to absorb all of those credit-card receivables and auto loans.

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Hyundai's new plant near Madras in southern India has an annual capacity of 120, 000 cars - quite large for a foreign auto maker and a new one at that.

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Kerkorian regards Ford stock as undervalued, and he may in fact buy more of it, Healy said, hedging that the American auto industry will pass through the current economic situation and that Ford will survive it in some capacity.

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Volkswagen has been determinedly individualistic about dealing with fallout from the European auto crisis, infamously sparring with Fiat CEO Sergio Marchionne about the need for a coordinated drawdown in continental production capacity.

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