One more indication that the world is still waking up to the fact that the party is over, EMs have gone "ex-growth" and the worst is yet to come. Ford sees growing overcapacity by global auto manufacturers in Brazil, India, etc., put in place by companies which were certain "the future" lay in BRIC-land. Emerging market stock investors have been feeling the pain for three years. The big commodity companies have been soundly thrashed and fired many a CEO. But for many MNCs who put most new investment in EMs in recent years, a day of reckoning awaits.
Global carmakers have built worrying amounts of production capacity in underperforming emerging markets, Ford's chief operating officer has warned, as sales in Brazil, Russia and India lag behind ambitious expectations.
Hopes that breakneck sales growth in emerging markets would offset plunging demand in western countries after the global financial crisis sparked a building boom in markets such as India, as carmakers poured billions of dollars into new factories to profit from predicted double-digit growth.
Ford warns on overcapacity in emerging markets - FT.com