French automaker Renault cut its sales forecast for this year on Wednesday after saying its sales worldwide rose by 4.3 percent in the first half compared to the same period of 2007.
Renault had previously been expecting growth in sales of 10 percent over 2008, but it reduced this forecast to 5.0-10.0 percent on Wednesday, citing the uncertain economic environment.
There was “a stronger probability of it (the growth figure) being in the lower end of the range,” said Renault sales director Patrick Blain.
He pointed to sluggish sales in Europe, Iran and South Korea and said high prices for oil and other raw materials were having an impact on the company.
The world economy is forecast to slow this year, with some countries going into recession, as the impact of the US sub-prime crisis and financial market turmoil take their toll.
Blain also conceded that some targets given by the company as part of a “Contract 2009” strategic plan presented by chief executive Carlos Ghosn in February 2006 might have to be revised.
The plan set an objective of increasing sales by 800,000 worldwide from the level of 2005.
“It's becoming harder and harder. The probability of reaching this target has fallen very sharply since the start of the year,” he said.
Renault said it sold 1.325 million vehicles worldwide in the January to June period, when its global market share crept up 0.2 points to 3.8 percent.
Renault added that “conditions were now in place” for continued growth in the second half.
But it cautioned: “The scope of future growth will depend in large part on developments in an uncertain economic and financial climate and their impact on key markets, notably in Europe and France.”
Shares in Renault gained 0.06 percent to 49.85 euros in early afternoon trade on the Paris stock exchange, underperforming the market as whole.
