LONDON (ShareCast) - (Sharecast News) - Shares in Renault tanked on Wednesday after the French automaker lowered its full-year margin and cash flow guidance which it blamed on a "deterioration" of market conditions and heightened competition.
The news came as the company announced the appointment of chief financial officer Duncan Minto as its interim chief executive, after former boss Luca de Meo announced his resignation last month following five years at the helm.

In a statement after market's closed on Tuesday, Renault said it was cutting its operating margin guidance for 2025 to 6.5%, down from at least 7% previously, and lowering its free cash flow forecast to €1.0bn-1.5bn from at least €2.0bn.

The new estimates take into account "the deterioration of the automotive market trends with an increasing commercial pressure from its competitors and the anticipation of the continuation of the retail market decline", the company said.

As a result, Renault said it was pursuing a "strict commercial policy" and prioritising value creation over volume, as well as stepping up its short-term cost-cutting plan.

The news came as the company reported a 2.5% increase in group revenues to €27.6bn, held back by a lower-than-expected performance in June, particularly in the European market.

Renault's share price was down 17.5% at €34.04 by 0928 in Paris.

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