RNO Renault SA

   By Max Bernhard 
 

Renault SA (RNO.FR) on Friday cut its 2019 outlook for global automotive markets after having lowered its expectations for profitability and revenue earlier in October.

The French auto maker said it now expects global auto markets to decrease by 4%, compared with previous forecasts of a 3% decline. Renault said it now expects the European market to shrink by up to 1%, having forecast flat demand before. Russia is expected to be down about 3%, compared with between 2% and 3% previously.

Last week Renault cut its 2019 revenue and profitability forecast, just days after its board ousted Thierry Bollore, its former chief executive. Mr. Bollore had been at Renault's helm for less than a year. He took the position in January, shortly after the arrest of Carlos Ghosn in November last year. The alliance between Renault and its Japanese partner Nissan Motor Co. Ltd. (7201.TO) has been in turmoil since then. Nissan recently replaced Hiroto Saikawa, who held the top job there, and said the company will be led by a three-person team.

Renault said Friday that it produced fewer cars for Nissan in the quarter. Sales to partners, which also include production for German car maker Daimler AG (DAI.XE), dropped by 5.5%. The closure of the Iranian market since August last year and a slump in demand for diesel cars in Europe also contributed to the decline, Renault said.

Revenue fell by 1.6% to 11.30 billion euros ($12.57 billion) from EUR11.48 billion in the same period last year. Renault said it sold 852,198 vehicles in the quarter, down 4.4%. Excluding Iran, the decrease would have been 1.8%, it said.

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

October 25, 2019 02:10 ET (06:10 GMT)

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