Renault shares slide as chief executive Luca de Meo quits to lead Kering

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Luca De Meo will step ascend as the CEO of Renault, where KERING rents to lead the transformation of the stalled French luxury group, according to the people who have been informed of the plan.

The departure sent shares to Renault, which decreased by 7 percent in early trading on Monday, while King 9.4 percent rose.

De Meo, 58, represents a major change in KERING, the owner of Gucci and Saint Laurent Brands, where Francois Henry Pinolt, a family member controlled the group, was an executive head for 20 years.

The weak performance of KERING in recent years raised questions about its management and strategy.

People who have knowledge of the situation said. It was not clear whether Pinult would remain a chair.

KERING refused to comment. The planned De Meo was reported from Renault to KERING by the French newspaper Le Figaro.

KERING shares have lost about 70 percent of their value over the past three years, which led to a 21 billion euros market, as a shift in Gucci, the largest source of revenues and profits for the company, in achieving it.

Also, a series of expensive acquisitions and real estate deals by KERING are not investors, as did this year from the controversial Balenciaga designer Demna to be the creative director of Gucci.

In a statement on Sunday, Renault said De Meo “will continue new challenges outside the auto sector” but will remain in effect in the company until July 15. De Meo could not have immediately reached to comment.

Since the CEO of Renault in 2020, De Meo has been greatly reinforced by the portfolio of French car products and the cost structure, converting it into one of the best performance companies in the sector despite its limited size.

The geographical footprint that focuses on Europe has also left relatively safe from US president Donald Trump’s tariff, as well as increasing competition from China, compared to their largest competitors such as Stelantis and Volkswagen.

The auto industry has seen many higher leadership changes over the past year with Stelantis, Nissan and Volvo cars that appoint new chief executives while the sector is struggling with the transition to electric cars and the rise of Chinese competitors.

The company said that the Renault Board of Directors began the process of appointing the new CEO.

He added: “The Board of Directors expressed its confidence in the quality and experience of the administration team to continue and accelerate the strategy of converting the Renault Group in this new stage.”