Renault adjusted its projections for 2025 on Tuesday. Appointed Duncan Minto, the finance chief as the acting CEO following a lackluster performance in June and the unexpected departure of Luca de Meoa, in the prior month.
The French car manufacturer has adjusted its operating margin expectation to 6..%, a decrease from the target of above 7% and has revised its free cash flow projection to € between 12 billion and €15 billion from the earlier figure of over €22 billion. This change was attributed to than projected sales volumes particularly in light commercial vehicles segment and delays, in account receivables caused by billing timing issues.
Since 1997 Minto has been a part of the Renault team for quite a while now and will be handling the operations as Chairman Jean Dominique Senard focuses on board matters at Renault; they are currently, in the process of finding a new permanent CEO.
Renaults downgrade has occurred amidst difficulties in dealing with the European market conditions where demand for smaller commercial vehicles has dwindled significantly. Moreover the company is, under pressure to balance cost management while staying competitive in the realm of electric vehicle advancements.
Renault is increasing efforts to save costs in response to challenges while competitors continue with their growth strategies in parallel. Investors are keenly observing whether Renaults temporary leadership can stabilize the company amid times, in the automotive sector and global supply networks.
