The second - largest carmaker in France, Renault SA has shocked everyone with an annual loss for the first time in 13 years. It has also forecast a contraction of about 10 per cent in the auto demand in Europe as the government sends out incentives this year.

The net - loss in this was about 3.1 billion euros which amounts to about $4.3 billion. It is a notable fact that the profit in the previous year was about 571 million euro. The analysts had expected a loss of about .6 billion euro, but this was clearly not expected as the revenue dipped by about 11 per cent.

It was reported that hey would have to be very careful in terms of pricing as the year 2010 was going to be tough on all car makers when pricing was the factor of concern. As there would be a lot of competition in the pricing range, Renault was seriously considering how far they should go into cost reduction. The trading in Paris had almost doubled and their stocks had gone down by only about 1.7 per cent.