Renault’s Stock Plunges 17% On Lowered Guidance And CEO Appointment

The stock of Renault (EPA:RNO) is down 17% after the French automaker lowered its 2025 guidance and announced the appointment of a new interim chief executive officer (CEO).The Paris-listed stock has fallen to a 52-week low and put the company on track for its worst trading day since March 2020 when the Covid-19 pandemic struck global equity markets.The steep selloff comes after Renault said in an operational update that it is targeting an operating margin of around 6.5% this year, down from a previous forecast of 7% or higher.The company also said that it is aiming for free cash flow this year of 1 billion euros ($1.16 billion U.S.) and 1.5 billion euros, down from 2 billion euros previously.The automaker, which does not have a strong presence in the U.S., has been relatively insulated from the trade disruptions caused by U.S. President Donald Trump’s tariffs.However, Renault has faced pressure from weak European sales and rising competition from Chinese vehicle manufacturers.At the same time, Renault announced the appointment of Duncan Minto as its interim CEO, following Luca de Meo’s resignation in June of this year after five years at the company’s helm.Analysts were quick to downgrade Renault’s stock on the latest news, with Deutsche Bank (DB) cutting its price target to 47 euros from 55 euros following the profit warning.Renault is scheduled to report its financial results on July 31. Prior to today (July 16), the company’s stock had declined 28% this year to trade at 34.11 euros.