Renault CEO Carlos Ghosn has told just-auto that the next 2-3 years will be mediocre for the European car market with little growth, but that he believes Europe’s economy will be in a growth phase after that.
“We are facing 2-3 mediocre years for the European car market with the market stable at best,” he said. “And at Renault we are preparing for three difficult years. There will be no market recovery in the short-term, with governments in Europe focused on cutting deficits and on austerity budgets.”
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However, Ghosn believes that policymakers in Europe will eventually turn their attention to restoring economic growth. “A lot depends on policies for the European economy,” he said. “Cutting deficits is normal across Europe now, but a policy of growth must be returned to in the medium-term. We believe that growth will return after 2-3 years.”
For 2013, Ghosn is sticking to a projection that the European car market will decline by 3-5%.
“The market is 10% down in the first two months of the year,” Ghosn said. “But the second half of last year was very weak in Europe, so the comparison later in the year will be against that low base and the whole year is likely to be around 3-5% down on 2012.”
Carlos Ghosn was speaking over breakfast at a preview event for the Renault Zoe electric car taking place just outside Lisbon. He also stressed the importance of the Renault Zoe for Renault in the future and that the company is looking for opportunities to extend electric vehicle sales in markets across the world.
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By GlobalData“The Zoe will initially be offered in eleven European countries,” he said. “But we see it as a world car, not limited to Europe. Europe is the start and where we will build the car’s credibility.”
Renault is also planning an electric car project for the Chinese market.
“You have to be able to offer a ‘new energy vehicle’ dimension to your investment plans in China now,” he said. “They have big targets for pure electric and plug-in hybrid vehicles [pure EV and PHEVs combined at 2m a year by 2020] and are very serious about them.”
See also:
PORTUGAL: Electrification helps the internal combustion engine – Renault’s Ghosn
FRANCE: No good news in Europe until 2016: Carlos Ghosn
