Renault shares plunge 17% after profit warning and interim CEO appointment
Renault (RENA.PA) shares tumbled as much as 17% on Wednesday after the French automaker cut its 2025 guidance and announced an interim chief executive, citing weaker-than-expected sales and a slowdown in the European market.
The company lowered its full-year operating margin target to 6.5%, down from a previous forecast of at least 7%, after June volumes fell short of expectations. Renault also warned on free cash flow, reporting just €47 million ($54.5 million) in the first half, largely due to a negative working capital impact of about €900 million from delayed billings and declining demand for passenger cars and vans in Europe, News.Az reports, citing Reuters.
Shares were down 15.5% at €34.80 by 07:53 GMT, after an earlier drop of 17%, setting the stage for Renault’s worst trading day since March 2020.
To address mounting challenges, Renault pledged to step up cost-cutting measures in the second half of the year. However, analysts warned that competitive pressures in the electric vehicle (EV) segment and broader market weakness could weigh on results beyond June.
“We foresee longer-term market pressure playing out beyond June. Most European carmakers released a new lineup of affordable electric vehicles, increasing competition,” analysts at Morningstar said, noting concerns about leadership uncertainty in a volatile market.
The automaker also announced late Tuesday that finance chief Duncan Minto will serve as interim CEO while the search for a permanent chief executive is “well underway.” Renault provided no timeline for the appointment.
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