Renault SA has cut its outlook for the global auto market, expecting demand to shrink by around 4 percent this year after the French carmaker slashed its forecasts.
The manufacturer previously expected the market to decline by 3 percent. In Renault's main market of Europe, which accounted for half of vehicle sales last year, demand is likely to fall by as much as 1 percent compared with an earlier prediction for a flat market, Renault said Friday.
The company shocked investors last week with a cut to revenue and profitability expectations, rattling confidence about the carmaker's grip on operations among a litany of woes. Fresh from a top management shake-up, Renault said it would need to make some choices on spending and review longer-term strategy as markets contract and costs mount to meet new emissions rules.