GM, which has missed its profit targets in Europe, has been quietly refurbishing its old factory at Russelsheim in Germany, shedding surplus labour and capacity along the way.
Huge amounts of surplus labour and spare capacity threaten to entrench deflation.
Pupils in England could be taught in bigger classes and by unqualified staff from next September, as a rising population puts pressure on school capacity, Labour has said.
The drop in inflation is likely to be the most pronounced in the developed world because of vast amounts of excess capacity in both labour and product markets.
With Labour, more of the capacity in the private sector will be used to benefit the whole NHS, with treatment free at the point of use and always on the basis of clinical need.
BBC: NEWS | UK | UK Politics | In full: Blair on his NHS pledges
With the economy close to full capacity and frequent reports of labour shortages, the risk of higher inflation remains real.
"There remains spare capacity - certainly in the labour market, " he said.
While emphasising repeatedly the uncertainty of the inflation outlook, Mr King said that the monetary policy committee's central view remained that spare capacity within companies and in the labour market would continue to put downward pressure on inflation in the longer term.
Under the Childcare Act 2006, a number of different factors - including the quality and capacity of local childcare providers, the local labour market and the council's own resources - are taken into account when assessing whether "sufficient childcare" is being provided in a local authority area.
These include labour-market measures and incentives for firms to shed excess capacity and debt.
Labour created a fund to which oversubscribed schools could apply to help increase capacity.
However, in the current weak economic climate, firms with lots of spare capacity find it hard to pass on costs, so rising labour costs are more likely to squeeze profits than to push up inflation.
Mr Davis, who is also a Labour councillor on Birmingham City Council, said he would be writing in that capacity to the rail regulator.
Mr Davis, who is also a Labour councillor on Birmingham City Council, said he would be writing in that capacity to the rail regulator about the situation.
Nor does the labour market support those who claim that public spending cuts have condemned Britain to a permanent loss of capacity from a decaying skills base.
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