Three of Europe’s leading carmakers issued stark warnings about the effects of the global financial crisis on their operations, saying profits and revenues were being squeezed as demand fell and suppliers struggled to overcome the credit crunch.

Fiat, the Italian car giant, said that in a “worst case scenario” its profits next year could sink to €400m ($513m), from an expected €3.4bn in 2008. Daimler, the German luxury carmaker, cut its earnings guidance for the second time this year. Renault of France cut its profit targets for 2008, making it unlikely that the company would achieve the goals of Carlos Ghosn, chief executive, in his three-year Commitment 2009 plan for the carmaker.