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Luca de Meo is set to step down as chief executive of Renault, as Kering has hired the Italian to lead a turnaround of the struggling French luxury group, as per sources familiar with the plan.
The news of de Meo’s departure caused Renault’s shares to plummet by 7% in early trading on Monday, while Kering saw a 5% rise in its stock value.
The appointment of de Meo, aged 58, signals a significant shift at Kering, the parent company of renowned brands such as Gucci and Saint Laurent, where François-Henri Pinault, a member of the controlling family, has held the roles of chair and chief executive for the past two decades.
Kering has faced challenges in recent years, leading to concerns about its management and strategic direction.
Pinault, aged 63, has decided to separate the positions of chair and chief executive at Kering, according to sources. It remains unclear whether Pinault will retain the chairmanship.
Kering has opted not to comment on the matter. Reports of de Meo’s move from Renault to Kering were initially published by French newspaper Le Figaro.
Over the past three years, Kering’s shares have experienced a 70% decline in value, resulting in a market capitalization of €21bn, as efforts to revitalize Gucci, the company’s primary revenue and profit generator, failed to yield significant results.
Amidst a series of costly acquisitions and real estate transactions, investor confidence wavered, particularly with the controversial appointment of former Balenciaga designer Demna as Gucci’s creative director earlier this year.
In an official statement released on Sunday, Renault announced that de Meo will be pursuing new opportunities outside the automotive sector but will remain with the company until July 15. De Meo was unavailable for immediate comment.
Since assuming the role of Renault’s chief executive in 2020, de Meo has successfully enhanced the French automaker’s product lineup and cost efficiency, positioning it as one of the industry’s top-performing companies despite its smaller scale.
Renault’s focus on the European market has shielded it from the impact of sweeping tariffs imposed by US President Donald Trump and heightened competition from Chinese rivals, providing a competitive edge over larger competitors like Stellantis and Volkswagen.
The automotive sector has witnessed several high-profile leadership changes in the past year, with companies such as Stellantis, Nissan, and Volvo Cars appointing new chief executives amidst the industry’s shift towards electric vehicles and the emergence of Chinese competitors.
Renault’s board has initiated the process of selecting a new chief executive, with the company expressing confidence in the management team’s abilities to continue and accelerate the group’s transformation strategy in this new phase.
