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Crushing Uncertainty: Alpine’s Fate Amid Renault’s Turmoil and Leadership Crisis

Redação by Redação
July 18, 2025
in Motorsports
Reading Time: 2 mins read
0
Crushing Uncertainty: Alpine’s Fate Amid Renault’s Turmoil and Leadership Crisis

Formula One F1 - British Grand Prix - Silverstone Circuit, Silverstone, Britain - July 6, 2025 Alpine's Pierre Gasly in the pit lane during the race Pool via REUTERS/Andrej Isakovic

The future of Alpine in Formula 1 hangs in the balance as the Renault team faces a whirlwind of uncertainty and turmoil just ahead of the Belgian Grand Prix. With the recent resignation of CEO Luca de Meo and a string of dismal financial results – including a near 20% drop in Renault’s stock value and a significant cash flow shortfall – questions loom large over the fate of the team in the pinnacle of motorsport.

Renault’s stocks took a nosedive since July 16th, plummeting by 18.47% in a single day after the company slashed its 2025 operational profit margin forecast. Year-to-date, the shares have already tumbled by 29.03%. Despite not being directly impacted by U.S. tariffs, Renault grapples with challenges in its key markets – France and China – eroding investor confidence.

The company now anticipates an operational margin of 6.5%, down from the initial 7% target, and has also revised its free cash flow projection to a range of €1 billion to €1.5 billion, a sharp decline from the previously envisioned €2 billion. Consequently, Deutsche Bank has downgraded Renault’s stock price target from €55 to €44.

Since July 15th, Duncan Minto, the Chief Financial Officer, has been serving as the interim leader. Renault is set to unveil its first-half results on July 31st. As the quest for a permanent CEO continues and pressure mounts to trim non-essential investments, speculation grows around the potential sale of Alpine, a costly venture situated outside Renault’s core business, particularly amidst heightened interest from various parties looking to acquire Formula 1 teams, which are currently in high demand.

While discussions about selling the team have surfaced before, given the challenges faced by the parent company and the team’s recent performance – transitioning to Mercedes engines – a sale may no longer be far-fetched. This prospect raises concerns as the automotive industry grapples with escalating instability, despite the robust and dynamic nature of motorsports. Brands have historically withdrawn investments in sports to safeguard their core operations or uphold their public image, as racing and cost-cutting measures (often leading to layoffs) seldom go hand in hand. Although investments seem secure for now, this situation should serve as a stark reminder that the apparent oasis in F1 and WEC is always subject to the whims of brands and their leaders, with rapid changes lurking around the corner.

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