Renault has reported a steep fall in profit and abandoned its targets for 2009, blaming an economic crisis "of massive proportions".

The company announced a net profit of 599m euros ($769m; £541m) for 2008, down 78% on the previous year.

Worldwide sales fell by 4%. Sales in Europe were down more than 7%.

Renault said it expected market conditions to worsen and added that its volume and operating margin targets for 2009 were now "unachievable".

The carmaker's priority for the year ahead is to aim for positive free cash flow.

"The crisis facing the automobile industry is profound," said Renault chief executive Carlos Ghosn.

"It risks being long and without doubt will change the industrial landscape."