Renault shares were the biggest losers on the CAC 40 index on Friday morning on the Paris Bourse, in the wake of the profit warning issued by its Japanese partner Nissan.

Shortly before 11:00 a.m., Renault shares dropped by around 3.8%, while the CAC lost just 0.8% at the same time.

As a result of lower-than-expected sales, notably due to inflation, Nissan has announced that it has revised downwards its financial targets for the 2023/2024 financial year, which ended on March 31.

The carmaker, which had already lowered its sales forecasts last February against a backdrop of intensifying competition, says it now expects only 3.44 million deliveries for the financial year, compared with the 3.55 million units previously envisaged.

Its annual sales are expected to come in at 12.600 billion yen, down from the 13,000 billion yen previously forecast.

Nissan's operating profit forecast has been cut from 620 billion yen to 530 billion yen, while the net profit target has been revised from 390 billion yen to 370 billion yen.

As Nissan's warning came after the Tokyo Stock Exchange closed, investors were unable to punish the Japanese automaker's stock immediately, and instead turned against its French partner.

Following the reshaping of their alliance, Renault recently sold several blocks of Nissan shares, but the group still held a 38.9% stake at the end of March.

The French group plans to eventually hold only a 15% stake in Nissan, down from over 43% last year.

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