French carmaker Renault has warned that sales to fall in 2019 and slashed margin target. A profit warning sent Renault’s shares as much as 15% lower, capping a turbulent year for the French carmaker since the arrest of long-time boss Carlos Ghosn and adding to signs of a sharp global auto industry slowdown.

Newly-appointed interim CEO Clotilde Delbos and Chairman of Renault Jean-Dominique Senard were present at a news conference at Renault headquarters in Boulogne-Billancourt, near Paris, on October 11.

Renault and Nissan both announced leadership changes last week, seeking to reboot their alliance, which was thrown into crisis last year by the arrest of Ghosn in Tokyo on financial misconduct charges, which he denies.

Two companies are struggling amid a global slowdown and a fall in emerging market demand, with pressures also coming from tougher emissions regulations in Europe and the need to invest in electric and self-driving technologies.

Rivals including Daimler and French Peugeot-maker PSA are set to add to the picture next week in sales updates, while Swedish truckmaker Volvo on Friday reported a sharp drop in orders. Renault said that sales were likely to drop between 3% and 4% this year, compared with its previous forecast for a similar outcome to 2018. It blamed difficulties in Argentina and Turkey in particular. The company also said its operating margin was set to come in at 5%, versus a previous 6% goal, as it struggles to keep a lid on research and development costs.

Analysts, who said they had expected sales targets to be revised, added that the margin guidance, equivalent to a steeper-than-expected 500 million to 600 million euro cut to Renault’s operating profit, was the main shock.

Reuters