Renault says market to remain difficult

Renault, France's second-biggest carmaker, said worldwide vehicle sales fell 3.1 per cent to 2

Renault, France's second-biggest carmaker, said worldwide vehicle sales fell 3.1 per cent to 2.3 million units in 2009 and it expected market conditions to remain difficult.

"As government scrapping incentives end, the auto industry context will remain challenging," Renault said in a statement.

Renault said it raised its worldwide market share last year by 0.1 per cent to 3.7 per cent of sales in an overall market down 3.7 per cent.

Sales of Renault-branded vehicles declined 7.8 per cent in the year, with cars down 4.0 per cent and commercial vehicles dropping 26 per cent.

Sales of vehicles branded Dacia, which is Renault's line of low-cost, stripped-down models, climbed 20.5 per cent.

Sales of 2,308,262 units in 2009 exclude Lada, the Russian car brand that is owned by Renault's Russian partner AvtoVAZ. Renault holds a 25 per cent stake in AvtoVAZ.

The figures came as Renault finds itself under pressure from the French government to preserve local jobs. President Sarkozy has summoned Renault CEO Carlos Ghosn to a meeting on Saturday over concerns that a new version of its popular Clio model may be produced in Turkey.

Renault's French rival Peugeot said earlier this week its full-year worldwide vehicle sales fell 2.2 per cent.

Reuters

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