Renault Group is facing a stark reminder of national and global structural pressures as the company’s share price fell 17% in 2025 after it downgraded its earnings forecast, following weak sales and a market outlook trending further downward.

While revenue rose slightly—2.5% to €27.6 billion—the company’s free cash flow collapsed to €47 million, exposing a growing gap between accounting growth and financial health.

Renault blames “market deterioration” and competitive pressures, but these figures reveal a stark reality: profits are increasingly fragile, squeezed by the dynamics of global markets and relentless competition.

Operating margins are expected to drop from over 7% to 6.5%, and projected free cash flow has been cut by roughly half.

Cost-cutting measures will target not only overhead and SG&A but also production and R&D—an austerity approach that often undermines long-term innovation in order to maintain short-term profitability.

Meanwhile, corporate governance remains unsettled, but the deeper question persists: who, if anyone, can steer a major automaker in a corporate system defined by market volatility, competitive pressures, and the prioritisation of shareholder returns over social or industrial stability?

Renault’s stock opened at €31.12 on Monday, January 19, down 2.23% from Friday’s close of €31.83, continuing a downward trend.

The decline reflects investor concerns over a tense market environment, including fears of a trade war following Donald Trump’s tariff threats.

Over the past week, the stock has fallen 7.93%, and over the past year, it has dropped 36.19%.