A key advisory body within the European Union is calling for special efforts to prevent recession-prompted plant closings and other capacity-reduction moves by European auto makers from going too far. “Care must be taken not to equate structural problems with overcapacity alone,” the European Economic and Social Committee says. It notes Europe already has seen a sharp drop in capacity, especially in Spain, Portugal and the U.K. in recent years, and says there is a danger under-capacity ...

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