A shortage of both car transport lorries and railway wagons could cripple the ability of car makers to deliver to customers in Europe, say logistics industry executives.

Investment in wagons and trucks is falling at a time when car production volumes are increasing and new operators will enter the market if the industry didn’t invest in capacity, said a senior finished vehicle transport manager from a major car maker speaking at the Automotive Logistics Europe conference in Montreux, Switzerland.

Contrary to accepted wisdom, the bulk of car components will continue to be sourced relatively locally, rather than brought in from low manufacturing-cost countries, say logistics executives.

“We think most sourcing will remain relatively local,” said Jim Moore, Vice President of Ryder System, speaking at the Automotive Logistics Europe conference in Montreux, Switzerland.

Montreux 6-8 March, 2007

The fifth annual Automotive Logistics Europe conference will look at the challenge of balancing global sourcing with concerns about the environment and sustainability.