Renault shares plunge as profit warning deepens its problems

PARIS: A hefty profit warning sent Renault shares tumbling as much as 15 per cent on Friday, 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.
Late on Thursday, Renault said sales were likely to drop between 3 per cent and 4 per cent this year.
The company also said its operating margin was set to come in at 5 per cent, versus a previous 6 per cent goal, as it struggles to keep a lid on research and development costs. — Reuters