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vwPARIS: European auto companies must become more competitive, Volkswagen board member Christian Klingler said Thursday, while also dismissing talk that Europe's auto industry suffered from overcapacity.

 

"The debate about overcapacity is not the right one, the debate must address competitiveness," Klingler said at a news conference in Paris.

Klingler was referring to recent calls by the heads of auto groups PSA Peugeot Citroen and Fiat that Europe had too many factories producing a surplus of cars.

Fiat chief executive Sergio Marchionne repeated his belief this week that Europe should reduce auto production capacity by 20 percent.

Peugeot head Philippe Varin, whose troubled auto group is entering a tie-up with US giant General Motors, has called on the European Union to help auto companies restructure, an invitation for state help Klingler deplored.

"I regret this debate that consists of transfering the responsibility to Brussels," Klinger said. "Frankly, Brussels has nothing to do with it."

Volkswagen, the new number two carmaker worldwide, earlier this month posted 2011 sales of 159.3 billion euros ($209 billion), a gain of 25.6 percent on a 12-month basis.

 

Copyright AFP (Agence France-Presse), 2012

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