Renault clings to market share as sales drop

PARIS (Reuters) - French carmaker Renault (RENA.PA) on Friday posted a 4.2 percent drop in 2008 sales in a world market that fell 4.8 percent as the global financial and economic crisis hit vehicle sales.

Sales of Renault brand vehicles fell 5.4 percent while Dacia brand sales rose 11.7 percent.

The group said its market share for the year reached 3.6 percent, stable compared the 2007 market share.

Renault said in a statement that "inventory management and reduction will remain a priority throughout 2009."

Earlier this week chief operating officer Patrick Pelata said the group had achieved its goal of reducing stocks of unsold vehicles to end-2007 levels by the end of December 2008.

In common with other manufacturers Renault has announced job cuts and temporary plant closures as it struggles to cope with a worldwide drop in vehicle sales. It said 2008 was marked by the arrival of an unprecedented global financial an economic crisis.

"The intensity of the crisis affecting the automotive sector and the brutal fall in our main markets led us to review our growth objectives for 2008," executive vice president sales Patrick Blain said in a statement.

"Despite the crisis, the Renault group has grown its market share," he added. It said the crisis was expected to continue in 2009 but it had three assets to boost its market share -- a continued renewal of the model range, the Renault Eco range adapted to environmental concerns and new tax measures, as well as the entry price range that is well suited to the current economic conditions.

Renault group sales include those of Romania's Dacia and Renault Samsung from South Korea but not those of Japanese alliance partner and 44-percent subsidiary Nissan Motor Co Ltd (7201.T).

(Reporting by Helen Massy-Beresford, editing by Marcel Michelson)