At a Glance

  • Renault Group announced on Tuesday, July 15, the appointment of Chief Financial Officer Duncan Minto as interim CEO, effective immediately. The previous CEO, Luca de Meo, had announced his intention to resign a month earlier, also effective July 15.
  • During the interim period, Minto will share responsibility for the company's day-to-day management with Jean-Dominique Senard, who is set to become Chairman. The company stated that the process to select a permanent CEO is "already underway."
  • On the same day, Renault lowered its full-year 2025 guidance for free cash flow and operating margin: it now expects free cash flow of 1 billion to 1.5 billion euros (approximately $1.16 billion to $1.7 billion), down from a previous forecast of 2 billion euros; operating margin is expected to be around 6.5%, down from a previous expectation of 7%. These adjustments are based on the company's preliminary results for the first half of 2025.

In-Depth Analysis

In its July 15 announcement, Renault Group stated that Minto, who joined Renault in 1997, possesses "solid financial experience and deep insight into issues." According to his LinkedIn profile, Minto has held various CFO roles across regions and business units at Renault, including four years as head of finance for the Asia-Pacific market and CFO of the Dacia brand.

The appointment of the interim CEO comes as Renault intensifies its cost-cutting plan. In its first-quarter earnings report released in April, the company had already announced additional measures to control spending.

Renault also disclosed that the group's first-half revenue was 27.6 billion euros, up 2.5% year-on-year. Free cash flow was 47 million euros, which included a "significant negative change in working capital requirements," estimated at around 900 million euros (excluding tax effects).

The company attributed its preliminary results to weaker-than-expected performance in June, including "commercial pressure from continued decline in the retail market," as well as underperformance in the light commercial vehicle business in a "sharply declining" European market.

European auto sales have been declining in recent months. According to data from the European Automobile Manufacturers' Association (ACEA), new car registrations in the EU fell 0.6% year-on-year in May, following a 1.2% decline in April. In May, new car registrations for Renault Group's brands (including Renault, Dacia, and Alpine) rose 4% year-on-year.

Facing increasingly intense market competition, Renault said it will adhere to a "strict commercial policy, prioritizing value creation over volume to protect new model launches," and continue its cash-reduction plan. Renault plans to publish its full first-half 2025 results on July 31.

European automakers are also under pressure from tariff policy changes by the Trump administration. On Saturday, July 12, U.S. President Donald Trump announced that the United States would impose a 30% tariff on imports from the EU and Mexico, effective August 1. European auto imports already face a 25% tariff, along with 50% tariffs on aluminum and steel. According to The New York Times, economists have warned that additional tariffs could weigh on economic growth in the region.

Other European automakers have already reported negative impacts from Trump's tariffs. On Monday, July 14, Volvo Cars announced it would record a non-cash impairment charge of 11.4 billion Swedish kronor (approximately $1.2 billion) in the second quarter, due to U.S. import tariffs affecting the profitability of some of its models in the U.S. German automakers have also said tariffs are pressuring their profit margins in the EU.

U.S. automakers such as Tesla are also feeling the impact of tariffs. Tesla CFO Vaibhav Taneja warned during an April earnings call that tariffs would have a "multifaceted impact" on its business. Tesla's net profit fell 71% in the first quarter of 2025, and vehicle deliveries dropped 13%.

Renault declined to comment beyond its press release regarding the interim CEO appointment.