Renault's Ghosn sees 2010 as difficult as 2009

ERJ staff report (AN)

PARIS (Reuters) -- Renault CEO Carlos Ghosn expects 2010 to be "as difficult as 2009" as the crisis in the worldwide auto industry continues.

Ghosn, who is also CEO of Renault's Japanese alliance partner Nissan, said he expected Europe to be among the last regions worldwide to return to growth, along with Japan.

He said he saw the United States and major emerging markets starting to pick up in the first quarter of 2010, and Europe and Japan returning to growth in the first quarter of 2011.

Ghosn said Renault had sold about 180,000 new cars in June in total.

Renault's global market share remained more or less stable in the first half, Ghosn said, adding that "we could have expected a bit better."

"I'm expecting 2010 to be as difficult as 2009. I am not expecting an immediate recovery," Ghosn told the French Europe 1 radio station.

Ghosn said the end of scrapping schemes, which offer cash bonuses for drivers exchanging old cars for new models, could be difficult.

Ghosn said a gradual transition rather than a sudden end to such schemes would help prevent a brutal shock for markets.

Government-supported scrapping incentives have boosted sales in many European markets including Germany, France, Spain, Italy and the UK.

Ghosn said Renault would start to pay back a 3 billion euro ($4.2 billion) loan it was granted by the French government earlier this year when it was reasonable to do so, but that it was "in no particular hurry".

Rival PSA/Peugeot-Citroen also received a 3 billion euro loan.

From Automotive News (A Crain publication)