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Renault lowers forecast amid sales slump, Nissan troubles

Posted at 6:27 AM, Jul 26, 2019
and last updated 2019-07-26 09:27:29-04

PARIS (AP) — French carmaker Renault is cutting back its sales forecasts amid slumping revenues and troubles at alliance partner Nissan.

Renault said Friday that it no longer expects growth in sales this year compared to 2018, when it sold 3.9 million cars. It blamed an overall slowdown in the auto industry.

Sales in the first half this year were down 6.4% to 28 billion euros ($31 billion). Renault reported that overall profit fell by half to 970 million euros because of weakness at Nissan, in which it owns a 43% stake.

Renault noted declining demand for diesel vehicles amid tougher emissions rules, and said sales were hurt by resumed U.S. sanctions on Iran.

Nissan announced Thursday it was slashing 12,500 jobs and production capacity amid tumbling profits.

Renault and Nissan have had a rough year since the arrest of former star CEO Carlos Ghosn.