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Renault Signals Potential Dividend Cut Amid Worsening Markets

  • French carmaker now sees demand shrinking 4%, down from 3%
  • Blames poor partner sales for revenue, profitability cut
Inside Renault SA Auto Plant As Spirit Of Merger Looms
Photographer: Andrey Rudakov/Bloomberg
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Renault SA hinted at a potential reduction in its dividend, after the French carmaker followed up on last week’s profit warning with a cut to the global auto market outlook.

The manufacturer now expects global demand to shrink by 4% this year, compared with a previous forecast for a decline of 3%, Renault said Friday. The company shocked investors last week with a cut to revenue and profitability expectations, as well as saying cash flow might not be positive for the year.