The U.S. auto market may be heading into a very good year, but there’s still reason to worry, cautioned FCA Chief Executive Officer Sergio Marchionne, during a well-attended media “roundtable” at the opening of the North American International Auto Show.
Like other senior executives gathered for a two–day preview, Marchionne said 2015 is likely to bring further sales gains in the U.S. He also said automakers appear to be showing great restraint in holding back on the “ruinous” practices of the past – such as excess incentives – that nearly destroyed the industry during the depths of the Great Recession.
Nonetheless, the outspoken Marchionne said there are still reasons to fret. He pointed to the ongoing problem with excess capacity in Europe, and the fact that the auto business is so costly to compete in that a failure of a single major project could put a company at risk of failure.