- Title: Renault shares slump after carmaker issues sales warning
- Date: 18th October 2019
- Summary: YOKOHAMA, JAPAN (FILE - FEBRUARY 23, 2017) (REUTERS) VARIOUS OF NISSAN CARS ON DISPLAY IN SHOWROOM BOULOGNE-BILLANCOURT, FRANCE (FILE - JUNE 4, 2019) (REUTERS) VARIOUS OF EXTERIORS OF RENAULT HEADQUARTERS
- Embargoed: 1st November 2019 08:49
- Keywords: Renault Ghosn Nissan management team revamp carmaker automobile industry
- Location: MAUBEUGE, PARIS & BOULOGNE-BILLANCOURT, FRANCE / YOKOHOMA, JAPAN
- City: MAUBEUGE, PARIS & BOULOGNE-BILLANCOURT, FRANCE / YOKOHOMA, JAPAN
- Country: France
- Topics: Commodities Markets,Economic Events
- Reuters ID: LVA003B1MKIFB
- Aspect Ratio: 16:9
- Story Text: A hefty profit warning sent Renault shares tumbling as much as 15% on Friday (October 18), capping a miserable year for the French carmaker following the arrest of long-time boss Carlos Ghosn and adding to signs of a sharp slowdown in the global auto industry.
Renault and partner Nissan both announced changes in leadership last week, seeking to reboot their alliance after it was thrown into crisis last year by the arrest of Ghosn in Tokyo on financial misconduct charges, which he denies.
But the companies are struggling amid a global industry slowdown, with pressures also coming from tougher emissions regulations in Europe and the need to invest in electric and self-driving technologies.
Renault shares dropped to a six year low of 46.7 euros and at 0805 GMT were down 13.1% at 47.69 euros.
Renault's sales warning came less than a week after it revamped its management team in a bid to turn a page on the Ghosn era, appointing financial chief Clotilde Delbos as its interim CEO. Nissan also has new faces at the helm.
Delbos said on Thursday evening the shake-up would pave the way for a renewed focus on joint projects that would allow the two to cut costs and usher in cleaner car models.
Late on Thursday, Renault said sales were likely to drop between 3% and 4% this year, compared with its previous forecast for a similar outcome to 2018. It blamed difficulties in markets outside Europe, like Argentina and Turkey in particular.
(Production: Kathryn Carlson, Michaela Cabrera)
- Copyright Holder: FILE REUTERS (CAN SELL)
- Usage Terms/Restrictions: None