PARIS, May 4 (Reuters) - French carmaker Renault (Paris:RENA.PA - News) hopes sales of its "5,000 euro" car for new markets will match those of its hit Megane model -- Europe's most popular car -- by 2010, the company's chairman said on Tuesday.
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Chairman Louis Schweitzer also told reporters he expected to make an operating profit margin of around five percent on the cut-price X90 model, which will be sold in eastern Europe, Russia, Morocco, Iran, Latin America and possibly China.
That would make it as profitable as the average Renault car sold in western Europe, where tough competition and lacklustre demand keeps margins tight, Schweitzer said.
"There is great potential for growth," Schweitzer told the association of French financial journalists. "By 2010 we hope to sell as many X90 cars annually as we sold of the Megane last year, when it was Europe's most popular car... around 700,000."
Schweitzer also reiterated that he was "very confident" Europe's fourth biggest carmaker would hit its goal of lifting 2004 operating margin to 4.5 percent from 3.7 percent last year, despite pressure from raw material prices.
"Yes, raw material prices will weigh on Renault's margins but they will not threaten our targets for the year," he said.
He also stuck with Renault's forecast for one percent growth for the western European market this year, noting that provisional figures for April showed recovery in demand would persist, even if economic powerhouses France and Germany remained weak.
Source : Yahoo
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Last edited by ported_head : 22nd February 2006 at 14:44.
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