Renault makes €3bn loss

Paris - French car giant Renault lost €3.125bn last year, chief executive Carlos Ghosn announced on Thursday, predicting another tough year ahead for the auto industry.

The group, part of the Renault-Nissan alliance and owner of several global marques, saw a 10.8% drop in revenue to €33.712bn, but saw sales begin to pick up in the last quarter of the year.

In 2008, Renault had made a net profit of €571m.

One hour after the Paris stock exchange opened, Renault's shares had already fallen 3.62% on the news in a market that was slightly up.

Ghosn said the firm had increased its world market share and had positive cash flow despite the global financial crisis, but admitted that he expected more hard times ahead in Renault's core European market.

"Economic conditions will remain difficult in 2010 with a 10% fall in the European market," he told reporters.

"We are continuing our work on building the Renault of the post-crisis period with the pursuit of the sales offensive in Europe," he added, promising six new models and a breakthrough in mass market zero-emission cars by 2011.

Renault will also look to strengthen its position in the more resilient emerging economies and increase cooperation with its Japanese global partner Nissan to produce €1bn in new cost savings for 2010.

The firm cut its costs by 17% over the course of 2009 and around half of its losses came from susidiaries.

It reduced its stocks backlog by a quarter in 2009, and plans to continue to do so while reducing the group's overall debt.

- AFP