Renault Lowers Profit Forecast After CEO Departure, Appoints Interim CEO

According to Bloomberg, French automaker Renault has lowered its profit expectations for 2025 following the unexpected departure of its former CEO. The company has appointed its current CFO, Duncan Minto, as the interim CEO. Minto will succeed Luca de Meo, who is set to become the CEO of Kering Group. On July 15, Renault announced that it is actively searching for a long-term CEO. Potential candidates include Dacia brand head Denis Le Vot, Renault's purchasing director Francois Provost, and former Stellantis executive Maxime Picat. Shortly after announcing Duncan Minto's appointment as interim CEO, Renault revised its operating profit margin forecast for this year from at least 7% to approximately 6.5%. The company also lowered its free cash flow expectation from at least €2 billion to between €1 billion and €1.5 billion due to increased market competition and declining vehicle sales. This adjusted forecast highlights the challenges faced by Renault's new management team, including weak demand in the European market, escalating trade tensions, and intensifying competition from Chinese automakers led by BYD. Duncan Minto and Renault's future long-term CEO will strive to continue the transformation process that has slowed under Luca de Meo, who pushed for growth by updating the product lineup and improving profitability. Minto noted that increased competition and a weak van market impacted Renault's financial performance in June. He also mentioned that the company has implemented cost-saving measures, primarily focusing on logistics, production, and R&D. The new management team will also take over several struggling business units, including the electric vehicle and software division Ampere, which failed to advance its IPO plans under previous leadership. Additionally, Renault needs to make strategic decisions on two major issues: how to reshape its alliance with Japanese partner Nissan and clarify its market positioning in China, where De Meo previously assembled an engineering team and actively advocated for emerging partnerships with Zhejiang Geely Holding Group.