Renault announced a new interim CEO on Tuesday and revealed that it has downgraded its earnings forecasts for this year. In a statement, the French brand said it anticipates an operating margin of 6.5% for this year, down from the 7% initially projected.
The French automaker expects to achieve a profit after operational expenses and investments (free cash flow) between €1 billion and €1.5 billion, below the €2 billion initially forecasted.
In this context, the Renault Group announced that “it follows a rigorous commercial policy, prioritizing value creation over volume to protect its launches. The Renault Group is also strengthening its short-term cost reduction plan and intensifying its initiatives in more structural areas”.
It is worth noting that in recent months, Renault has been recording positive sales results for its models, driven by the launch of new models. However, the French company has faced pressure from weak European demand and increasing competition from Chinese automakers.
The French manufacturer will present its financial results for the first half on July 31.
