Renault has today reported a first-half net loss attributable to the group of €11.19 billion today, including a one-off €9.3 billion from writing down its investment in partner Nissan flagged earlier this month.
Revenues at the French car maker came in at €27.6 billion, up 2.5% compared with a year earlier, helped by several new product launches, though its operating margin fell 2.1 percentage points to 6%.
Renault lowered its annual forecast earlier this month after market conditions deteriorated, particularly in the commercial vehicle market.
The group, whose sales volume growth slowed to 1.3% in the first half, now expects an operating margin of around 6.5% in 2025, compared with at least 7% previously targeted, and free cash flow of between €1 billion and €1.5 billion, compared with at least €2 billion previously anticipated.
"Our first-half results, in a challenging market, were not aligned with our initial ambitions," said Francois Provost, appointed new CEO of the group last night.
"Nevertheless, Renault Group's profitability remains a reference in our industry, and we are determined to maintain this standard," he added in a statement.
Excluding the impact related to Nissan, its net income attributable to the group reached €461m.
Renault opted for a low-profile insider to steer the French carmaker through growing competition and weak demand that triggered a profit warning earlier this month.
The rapid promotion of its head of partnerships, less than two months after former boss Luca de Meo's abrupt departure to join luxury group Kering, comes at a critical time for Renault, which was preparing to roll out a new strategic plan later this year.
Little-known outside the group, Provost, 57, had spearheaded the automaker's previous transformation plan unveiled in 2022 by De Meo, and as director of partnerships, was heavily involved in implementing the former CEO's vision of an asset-light approach to compete with much bigger rivals like Stellantis.
"Thanks to his expertise and knowledge of the company, we will be able to complete the implementation of our strategic plan, finalise the terms of the next one, and ensure its successful execution," Chair Jean-Dominique Senard said in a statement.
Renault has fared better than many of its peers over the last year thanks to a focus on Europe that largely insulates it from trade turmoil caused by US President Donald Trump's tariffs.
But its reliance on Europe makes it more vulnerable to the region's sluggish growth, and weaker-than-expected June volumes led it to cut its full-year margin forecast earlier this month and step up cost-cutting measures.
The new strategic plan, dubbed "Futurama" by De Meo, aims to continue modernising the group's vehicle range and building partnerships to help Renault keep up in the electric vehicle market, despite being smaller than many EV competitors such as Volkswagen, Tesla and China's BYD.
Less of a product specialist than De Meo, Provost's experience overseas and understanding of company strategy likely won over the board, said Michael Foundoukidis, an analyst at Oddo-BHF.
With more than 20 years' experience at Renault, Provost also worked with De Meo on creating the EV unit Ampere, and brought investors into the internal combustion engine and hybrid powertrain business.
He has been pivotal in creating and extending Renault's partnership arrangements, including its cooperation in South Korea with China's Geely and the reshaping of Renault's alliance with Nissan, said Morningstar analyst Rella Suskin.
A graduate of France's Polytechnique and Mines engineering schools, Provost began his career at the Ministry of Economy and Finance, before being appointed industrial advisor to the defence ministry.
His understanding of the public sector could help in his relations with the French government, one of Renault's largest shareholders, with a 15% stake.
