Renault shares dive after police raids on factories

Shares in Renault have plummeted 20% in the wake of police raids on some of its factories, which took place last week.

The French manufacturer’s CGT and CFDT trade unions first revealed the news, with fraud investigators looking for cheating devices and software similar to those used by Volkwagen to manipulate diesel car emissions tests.

French-speaking publication Le Monde reports that the GCT Renault produced and issued a leaflet to say that engine control units were the primary targets of the searches, adding that these were most likely linked to “the aftermath of the Volkswagen rigged-engines scandal”.

Renault has confirmed the raid in a statement but insisted that “no evidence” of fraudulent equipment had been found, adding that it was “fully cooperating” with the investigations.

It remains to be seen whether the drop in share prices is only a temporary blip for Renault, and whether this will have an impact on its Formula One programme.

The French constructor is returning to the sport with a works outfit this year, having bought a 90% share to complete its takeover of Lotus last December.

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Julien Billiotte

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