Renault forecasts that the French car market will shrink 13 percent and European deliveries will fall 7-8 percent this year.
The French carmaker has cut its full-year market forecasts for France and Europe as conditions worsen across the region, a company spokeswoman told Reuters on Wednesday.
Renault had previously predicted declines of 11 percent for its home market and 6-7 percent for Europe. According to the automaker, some of its suppliers are considered to be “at risk” after the market accelerated its decrease over the summer, according to a Credit Suisse note.
In the first six months of this year, Renault’s global deliveries dropped 3.3 percent to 1.33 million units. In Europe Renault sales decreased by 15 percent. Shrinking markets and overcapacity in Europe are the biggest headaches for European car manufacturers.
Peugeot, Renault, Fiat, Ford and Opel are among the most vulnerable carmakers during this time of economic downturn. So far this year, France’s car market is down 13 percent, while French companies have suffered significant falls in sales in depressed Italy and Spain too.
Renault is nevertheless less dependent on the European market than Peugeot, the most troubled European carmaker. PSA lost 819 million euros before tax in the first half of this year, while Renault reported a lower net income of 786 million euros and negative cash flow of 200 million euros.