French carmaker Renault plans to cut output further to reduce its inventories of unsold cars by the end of 2008 to the same level as the end of last year after a rapid decline in markets.

'In a worldwide automotive market hit by the crisis, Renault's October 2008 sales dipped by 14.1 per cent versus October 2007,' Renault said in a statement on Friday, adding the slowdown in the European market had intensified in October.

In Europe, group sales fell 16 percent last month, in line with the market decrease of 15 percent.

The main emerging markets where the Renault group is present - Russia, Brazil, Romania and Turkey - fell dramatically, and the used car market worsened further, particularly in Europe.

'The financial crisis became more acute with a strong impact on the sales network,' Renault said.

In this environment, Renault continued to place priority on sales to retail customers and company fleets, as well as on reducing inventories of new and used vehicles, it added.

Renault said its manufacturing programme must be adjusted to ensure a close fit between inventory levels and market demand.

Renault gave no financial details, but a spokeswoman said at the half-year stage inventories were 6.5 billion euros ($8.12 billion) and needed to be brought below 5.9 billion.

Renault shares were up 1.7 percent at 19.41 euros at 1028 GMT, after an 80 percent decline this year.-Reuters