Renault Group’s share price plummeted by 17% following the French automaker’s significant downward revision of its 2025 financial forecasts. This sharp market reaction reflects growing concerns over a deteriorating automotive landscape and heightened competitive pressures.
- Renault Group’s share price fell 17% after revised 2025 financial forecasts.
- The 2025 operating margin forecast was cut to approximately 6.5% from over 7%.
- 2025 free cash flow projection was lowered to €1 billion-€1.5 billion, from over €2 billion.
- Former CEO Luca de Meo departed for Kering; CFO Duncan Minto appointed interim CEO.
- The company is accelerating its cost reduction plan across SG&A, manufacturing, and R&D.
- Half-year financial results are slated for release on July 31.
Revised Financial Projections for 2025
The group now projects its 2025 operating margin at approximately 6.5%, a notable reduction from its prior expectation of over 7%. Similarly, the free cash flow forecast for 2025 has been significantly lowered to between €1 billion and €1.5 billion, down from the previous projection exceeding €2 billion. These revisions are largely driven by a worsening automotive market outlook, intensifying commercial competition, and an anticipated decline in retail sales.
First-Half Performance and Cost Optimization Measures
Despite reporting a 2.5% increase in first-half revenue, reaching €27.6 billion, Renault Group’s free cash flow for the same period was a modest €47 million, significantly below analyst consensus. In light of these financial pressures, the company is expediting its short-term cost reduction program. This comprehensive initiative will focus on optimizing selling, general, and administrative (SG&A) expenses, enhancing manufacturing efficiencies, and realizing savings in research & development, all designed to fortify financial resilience amid challenging market conditions.
Leadership Changes Amidst Market Headwinds
These financial recalibrations occur concurrently with a notable leadership transition within the group. Former Chief Executive Officer Luca de Meo has departed to assume a new position at the luxury conglomerate Kering. Renault Group has since appointed its Chief Financial Officer, Duncan Minto, as interim CEO. The company has confirmed that the search for a permanent successor is actively progressing, with Minto overseeing day-to-day operations in collaboration with Chairman Jean-Dominique Senard.
Anticipated Half-Year Results
The automotive group is scheduled to release its half-year results on July 31. This highly anticipated publication is expected to provide deeper insights into the company’s financial health and strategic direction within the challenging and evolving automotive industry landscape.
Jonathan Reed received his MA in Journalism from Columbia University and has reported on corporate governance and leadership for major business magazines. His coverage focuses on executive decision-making, startup innovation, and the evolving role of technology in driving business growth.