Currently reading: Why electric vehicle era means legacy factories must close
New plants dedicated to easier-to-produce EVs could make older ICE facilities redundant

There is a growing concern about excess capacity in vehicle production.

Excess capacity has been the bane of the industry for decades as every vehicle manufacturer has competed to stay ahead of its rivals. With a focus on too many plants, manufacturers in Europe, North America and Japan levelled off in the early 2000s by maintaining an adequate production/ sales balance to keep profits high. Additional competitors, first from South Korea and later China, have boosted global production capacity and put pressure on profits around the world.

Hyundai-Kia has developed into a global powerhouse and reached a level where production remains in the profitable range.

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