AP News

News Summary: Hardship seen for European carmakers

PARIS CAR SHOW: France's Peugeot, Citroen and Renault see the event as a chance to show off their newest cars and prototypes to a hometown crowd, but European executives seemed just as preoccupied with their shrinking market.

TOO MANY PLANTS: European governments bailed out carmakers but failed to force them to overhaul their businesses, leaving the industry with too many factories to handle dwindling demand. New passenger car registrations in the European Union have declined for 11 straight months.

LABOR STRIFE AHEAD?: Most European countries have strong labor protections that can delay layoffs for months after they're announced. Governments are reluctant to facilitate job cuts when unemployment is already in the double-digits in many countries, including France, Italy and Spain.

The Aging of Abercrombie & Fitch
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