Renault plunges on guidance cut and interim CEO appointment

French carmaker Renault is tumbling on the stock market after slashing its full-year guidance and appointing an interim CEO following the sudden departure of Luca de Meo, who resigned last month to join luxury group Kering.

The board has appointed Duncan Minto, currently the Group's CFO, as interim CEO until a permanent replacement is named. Minto will oversee day-to-day operations alongside Jean-Dominique Senard, who will serve as President of Renault S.A.S., the Group’s operational entity, during this transition.

Renault also announced that its free cash flow for H1 2025 will amount to just €47 million, weighed down by a negative working capital requirement of around €900 million, mainly due to billing delays and a decline in the European car and van market.

To reflect deteriorating market trends, mounting competitive pressure, and an expected continuation of weakness in the retail market, Renault has revised its 2025 targets:

1. Operating margin is now seen at around 6.5%, down from a prior forecast of at least 7%;
2. Free cash flow is expected in the range of €1.0–1.5 billion, compared to the previous target of at least €2 billion.

Renault is by far the worst performer on the CAC 40, trading at €34.39, down 16.63%. The downtrend is expected to continue, with support levels seen at €33.77 and €33.14, while resistance stands at €35.47.