Renault Experiences 22.4% Decline in Q1 Sales

After taking a financial stroll through Daimler's and Honda's not so thrilling first quarter results, it's time we visit the French as Renault have just posted their financial results.

We have a feeling that Renault's management will switch to a bit cheaper Bordeaux now that the worldwide group sales have gone down 22.4% in the first quarter. Europe was responsible for more than one-half of the fall in car revenues.

Germany, however, was the only country on the old continent to have recorded growth in the first three months of year. Thanks to the scrapping bonus and the doubling of Dacia sales, the sales went up by 3.4%.

Speaking of Dacia, Renault reports that thanks to the scrapping schemes in Europe, the Romanian brand recorded an impressive growth of 29%. With an increase of more than 15%, one could say that the new Twingo also did well.

Outside Europe, Renault also experienced dramatic decline with the Eurasia region probably the most affected. In a market that shrank by 44.8%, sales were down 40.3%. In the Asia-Africa region, in a market that contracted by 12.7%, group sales were down 20.2%.

In terms of revenues, Renault tumbled 30.8% compared to the first quarter of 2008 and topped at €7,080 million.

Still, despite the bleak predictions, Renault still expects the global market to total 55 million units in 2009. The company hopes that the successful launches of the New Mégane hatch and coupe will be shared by the new Grand Scénic, new Scénic and new Mégane Estate.