F&I Management & Training

French carmaker Renault has reported a steep fall in profit and abandoned its targets for 2009, blaming an economic crisis "of massive proportions". The company announced a net profit of 599m euros ($769m; £541m) for 2008, down 78% on the previous year. Worldwide sales fell by 4%. Sales in Europe were down more than 7%. Renault said it expected market conditions to worsen and added that its volume and operating margin targets for 2009 were now "unachievable". 'Profound crisis' The company said it had a single priority for the year ahead - to aim for positive free cash flow. The car industry has been hit by a slump in demand amid a wider economic slowdown. Industry-wide new car sales in Europe fell 17.8% in December. "The crisis facing the automobile industry is profound," said Renault chief executive Carlos Ghosn. "It risks being long and without doubt will change the industrial landscape."

DATED: 15.02.09

FEED: AW