Renault shares crash 17% after the automaker's profit warning
Late Tuesday, the company lowered its operating margin guidance for 2025 from at least 7% to 6.5%.
On Wednesday, Renault's stock on the Euronext Paris exchange was down 16.3% at 34.79 euros at 10:00 a.m. local time, marking its steepest one-day drop since the start of the COVID-19 pandemic in 2020.
Renault attributed the revised forecast to "the deterioration of the automotive market trends with an increasing commercial pressure" from competitors and a slowdown in the retail segment.
The company is also aiming for a free cash flow between 1 billion to 1.5 billion euros, down from at least 2 billion euros previously.
Separately, Renault announced the appointment of Duncan Minto as interim CEO, following the resignation of Luca de Meo last month. De Meo joined luxury group Kering.
Renault is expected to report half-year earnings on July 31.
The company's shares are down more than 25% this year.
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