Renault Blames Delivery Delays for Disappointing First Half

PARIS – Despite its troubles delivering cars in Europe, Renault sales in the year’s first half grew 1.9% and set a group record of 1.4 million units.

Deliveries outside Europe climbed 20.4% in the period, but fell 7.4% in Europe to 831,712 units, mainly because of problems fulfilling orders to customers in the region.

Kangoo among three Renault EVs to launch in year’s second-half.

The auto maker says it could have delivered 50,000 more vehicles in Europe in the first half if it had been able to manufacture them. Production was stalled due to a lack of 1.5L diesel engines and other unspecified parts.

The Renault brand saw 5.7% growth in the first half, while Dacia was down 3%. Dacia sales particularly were hard-hit in France. That’s because a year ago the Dacia Sandero powered by liquefied-petroleum gas sold thousands of units thanks to a government incentive that since has been eliminated.

Renault’s other brand, Renault Samsung in South Korea, saw sales slide 36% in the first half. Renault blames the end of production of the old SM7 and supply difficulties linked to the March tsunami in Japan.

The auto maker’s deliveries in France were down 9.9%. The French market is heavily oriented toward small cars, which have been affected most by Renault’s lack of diesel engines.

Sales in France also may have been affected by negative news this spring involving the firing of three Renault executives based on erroneous, anonymous accusations.

Since then, the auto maker has admitted its errors, compensated the employees, fired or demoted some executives and moved on. But for months, French headlines were about people and not vehicles.

Renault is optimistic about second-half 2011, believing the global market will grow 3%-4% this year, while Europe will end up with either no growth or down 2%.

In France, the auto maker predicts full-year sales will fall 4%-6%, which is more optimistic than the CCFA industry organization, which earlier this month forecast a 10% sales decline.

Renault says its factories in Europe will speed up production at the end of August, and delays in deliveries will begin to diminish.

Registration levels in France don’t reflect the level of commercial activity, Renault says in a statement. Advance orders are 18% higher than in June 2010 and “represent two months of sales.”

“Thanks to a full order book in Europe, and with the continuation of our international offensive, the Renault Group foresees a new sales record for the year as a whole,” says Jerome Stoll, executive vice president-sales and utility vehicles.

“In Europe, the second half will also be marked by the launch of the first three Renault electric vehicles: the Kangoo Z.E, Fluence Z.E and Twizy.”

Growth was especially good in Russia and Brazil. In Russia, Renault sales soared 76% in the first half and the brand captured a 6% market share, the third highest in the country. The Renault Logan was the fifth best-selling vehicle in the country and led all other non-Russian brands.

Brazil is Renault’s third largest market, after France and Germany, and sales there climbed 24.6 % in the first half, for a 4.9% share.