Renault shares plunge 18% after French carmaker lowers guidance, appoints new interim CEO

• Shares of French carmaker Renault fell as much as 18% on Wednesday after lowering its financial guidance.
• The company also named Duncan Minto as its new interim chief executive officer.
• Renault, which is not present in the U.S. market, has previously been singled out as a company that is relatively insulated from the trade disruption caused by Trump's tariffs.

Shares of French carmaker Renault plunged as much as 18% on Wednesday after the company lowered its 2025 guidance and announced the appointment of a new interim chief executive officer.

The Paris-listed stock was last seen trading down 17.8%, reaching a fresh 52-week low and putting the company on track for its worst trading day since March 2020.

In a trading update published late Tuesday, Renault said it is targeting an operating margin of around 6.5% this year, down from a previous forecast of around or exceeding 7%.

The company is also aiming for a free cash-flow between 1 billion euros ($1.16 billion) and 1.5 billion euros, down from roughly or above 2 billion euros, previously.

Renault has fared better than many of its European peers in recent months, with a flurry of new launches boosting sales in key markets.

The automaker, which is not directly present in the U.S. market, has previously been singled out as a company that is relatively insulated from the trade disruption caused by U.S. President Donald Trump's tariffs.

However, it has faced pressure from muted European demand and rising competition from Chinese car manufacturers.

Renault on Tuesday announced the appointment of Duncan Minto as interim CEO, following Luca de Meo's abrupt resignation last month after around five years at the helm of the company.

“Currently CFO of Renault Group, Duncan Minto will ensure the day-to-day management of the company alongside Jean-Dominique Senard, who will hold the position of Chairman of Renault s.a.s., the operating company of the Group, during this period,” Renault said in a statement.

Analysts at Germany's Deutsche Bank cut their target price to 47 euros, down from 55 euros, on news of Renault's profit warning.

“While the new margin guide remains solid also relative to peers, we see the warning as an obvious additional hit on sentiment for shares,” analysts at Deutsche Bank said in a research note.

Renault is poised to report its half-year results on July 31.

Jeep maker Stellantis and Germany's Volkswagen were also trading lower on Wednesday, down 4% and 2%, respectively.