Sharp Sell-Off: Renault Cuts Profit Forecast, Names Interim CEO
On July 16, 2025, Renault’s stock experienced a dramatic drop of around 16%, triggered by a surprise profit warning and disappointing first-half cash flow figures. The company stated that June sales came in below expectations, prompting a revision of full-year operating margin guidance to 6.5%, down from the previous ≥ 7%. First-half free cash flow reached a mere €47 million, severely under the forecasted €650 million .
⚠️ Market Fallout & Sector Sentiment
- It marked Renault’s steepest one-day loss since early 2020, wiping billions off its market value.
- The broader European auto index took a hit—Stellantis dropped ~3%, Volkswagen slid ~1.3% on fears of cascading margin pressures .
- Analysts flagged ongoing challenges: weak retail demand across Europe, margin compression, and stiff competition from Chinese electric vehicles undermining Renault’s position .
🛠️ Internal Shake-Up & Strategic Response
- Duncan Minto, the CFO since March, stepped into the role of interim CEO, with the board continuing to evaluate candidates like Denis Le Vot and Maxime Picat.
- Renault announced new cost-control initiatives spanning production, administrative expenses, and R&D—details to be fleshed out in the end-of-month earnings call .
📅 What Lies Ahead
- Market attention is now fixed on Renault’s upcoming half-year earnings release on July 31, which could set the tone for investor confidence.
- Key themes to monitor include the pace of cost reduction, stabilization of margins, CEO selection, and performance of new EV models.
