F&I Management & Training

Renault cut its 2009 sales target and pledged further cost-cutting in anticipation of a tougher European market after announcing a better-than-expected operating margin in the first half of this year. Renault says it will report a 2008 operating margin of 4.5%, up from 3.6% in 2007. However, the company warned that 'worsening economic conditions would make this milestone more difficult to attain'. Chairman and chief executive Carlos Ghosn said after sales in Europe dropped 0.5% in the first half compared with the same period last year: "We are in a fight in Europe." Renault expects a 4% drop in sales in Europe in 2008, with no improvement in 2009. However, the company has stuck to its promise of achieving an operating margin of 6% in 2009 but will have to cut jobs and costs to achieve it.

DATED: 28.07.08

FEED: AW