Supply in motor industry outstripping demand by 30 per cent

Cap Gemini is developing a computer-simulated model of the European motor industry in an effort to improve its associated consultancy services. Known as the 'European Automotive Model', the system is scheduled to be completed by October.

The unfinished system has already predicted that the industry is running at 30 per cent above capacity. Les Mara, UK executive director at Cap Gemini, said: "There is certainly more capacity than demand.

"There are around ten major players in Europe, which accounts for a third of the global car manufacturing industry." Mara explained that this amount is "not sustainable for the next two to three years". He believes that there has to be European consolidation so companies can focus on a brand. "We will see more activity in the mergers and acquisition area for sure," he said.

The data used comes from the Centre for Automotive Research at the University of Cardiff and is deployed by Cap Gemini's operational science consulting group.