Due to slow sales in Europe, Renault cut its growth target for 2012.
From January to June Renault’s deliveries dropped 3.3% to 1.33 million units, led by a 15% drop in Europe. In France 22.5% of people younger than 25 are out of work, in Italy 36% and in Spain 52%. This translates in a generation of drivers lost and European car makers are struggling to stem losses in the region. Over the last 12 months, Peugeot, Renault and Fiat lost more than 9 billion euro in combined market value. Renault already changed its mind about the estimated 3% or 4% raise in deliveries.
“Two-thirds of that decline was due to the market and market mix, and one-third was a consequence of choices made to preserve our margins,” said Jerome Stoll, vice president of sales and marketing.
Sales in the European Union by the end of this year are expected to fall to 12.2 million vehicles, the lowest since 1995 and 21% down the 2007 peak. The European market will reach the 2007 level in 2018.
“Given the sales figures for the first half of the year, it is no great surprise that they will be unable to reach the goal,” said Michael Punzet, a Frankfurt, Germany-based analyst at DZ Bank.