European Car Market Growth in 2014 Still Slow - Renault CEO

By Inti Landauro

PARIS--The European car market recovery will recover slightly in 2014 after bottoming out last year after five consecutive annual declines, the chief executive of French car maker Renault SA (RNO.FR) said Wednesday.

Sales in the region will rise 3% or 4% this year, Carlos Ghosn said in an interview with French radio France Inter. "The recovery is slow and not that significant but it's a good news," he said. "The market hadn't stopped falling since 2007, we are still 20% and 23% below the level before the crisis."

Renault's CEO said the car market are strong in China, but weak in Brazil and Russia.

Sanctions imposed on Russia by western countries because of its role in the Ukraine crisis hasn't directly hit Renault's operations in the country, but the sanctions have accentuated the market decline in the country, he said.

This year overall sales in Russia have fallen by 12% from 2013, while Renault's sales have fallen 10%. For August, the most recent month for which data are available, sales in Russia were down by more than 20%, while Renault's sales showing a 18% decline, Renault said.

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