Renault vehicle sales tank

Paris - France's Renault said on Friday that vehicle sales fell 28.5% in December as the global financial and economic crisis led to a "brutal" collapse of the market.

For the full year, Renault posted a sales drop of 4.2% in a world market that fell 4.8%. Renault held its share of the world market for cars and light commercial vehicles steady at 3.6% in 2008.

"The intensity of the crisis affecting the automotive sector and the brutal fall in our main markets led us to review our growth objectives for 2008," Patrick Blain, head of sales and marketing, said in a statement.

Bleak prospects have caused auto makers worldwide to dramatically cut production. The steep decline in demand for cars has caused Renault to abandon the sales targets of its four-year turnaround plan launched in 2006. A year ago it predicted a 10% growth in sales in 2008.

Renault gave little guidance for 2009. It said the crisis is "expected to continue" and inventory reduction will remain a priority.

The French carmaker also said it hopes to increase its market share thanks to its range of budget and low-fuel-consumption models.

In 2008, Renault sold 2.38 million vehicles, down from 2.49 million in 2007.

Global sales of the Renault brand fell 5.4%, while Renault's Korean unit Renault Samsung Motors reported a 12.6% sales drop.

In Europe, Renault sales fell 7.2%, including a 0.3% drop in its home market of France.

Dacia, a Romanian subsidiary that makes the low-budget Logan family, reported a sales increase of 11.7%.

Full financial results will be reported February 12.

- AP