Fiat boss warns of European car production cuts

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Pricewaterhouse Coopers has estimated Europe sold 13.5 million vehicles last year, down from a peak of 16 million in 2007.

Mr Marchionne said at a conference yesterday that he thinks sales will stay at that depressed level until at least 2014, unless Europe's governments solve the region's debt crisis.

A regional car trade group estimates that Europe has around 200 car plants that employ 2.3 million people.

Mr Marchionne said European leaders have a great opportunity to transform the region, but must act quickly