Dubai: Luca de Meo, the CEO credited with Renault’s dramatic turnaround, is set to leave the French carmaker to take the top job at Kering SA, the luxury group behind Gucci, according to sources cited by Bloomberg News and Le Figaro.
The high-profile move comes as Kering attempts to revitalise Gucci’s global standing, especially in struggling markets like China.
De Meo’s departure was confirmed by Renault in a statement on Sunday, which said he had tendered his resignation and would officially leave on July 15. The Renault board has launched a search for a successor.
Markets react swiftly
The news sparked sharp moves in Paris trading:
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Renault shares fell as much as 8%, the steepest decline since July
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Kering shares jumped up to 8.3%, their biggest gain in over two months
Investors clearly saw the move as a loss for Renault but a potentially transformational step for Kering, which has struggled in recent years to compete with luxury giants LVMH and Hermès.
“This is clearly good news for Kering and a bad one for Renault,” said Enguerrand Artaz, a fund manager at La Financière de l’Echiquier. “It could potentially undermine Renault’s growth strategy.”
Surprise pivot to fashion
De Meo, 58, has no direct background in luxury retail but led Renault through a critical recovery period — overseeing its exit from Russia, realigning its long-troubled Nissan alliance, and pushing forward with EV models like the Megane E-Tech. Under his leadership, Renault shares doubled, and the company issued strong guidance for 2025.
He also forged partnerships with fashion brands like Agnès B., which may have hinted at broader interests.
“De Meo brought back energy and peak results to Renault,” wrote Jefferies analyst Philippe Houchois, calling his exit a major loss as Renault prepares to unveil a new strategic plan.
Kering, meanwhile, is under pressure. Its once high-flying label Gucci has stumbled, forcing the company to cycle through designers and executive reshuffles. Gucci still accounts for nearly two-thirds of Kering’s profit, making this leadership appointment particularly pivotal.
What’s next for Kering?
The appointment of De Meo also raises questions about Francois-Henri Pinault’s future. Pinault, 63, currently holds both CEO and Chairman roles at Kering. French magazine Challenges recently reported that a split of these roles was being considered, with Pinault likely to retain his chairman post.
Kering has cycled through multiple high-level changes in the past year, including new CEOs for Gucci and Saint Laurent. De Meo’s arrival could shift the company toward a more hands-on, data-led strategy as it attempts to recover from years of underperformance and PR missteps — including backlash from a Balenciaga campaign in 2022.
Analysts believe De Meo’s outsider status and restructuring experience may make him well-suited to make bold changes.
Renault’s future unclear
For Renault, De Meo’s resignation comes at a sensitive time. The company was the only major European automaker not to issue a profit warning in 2024, and had so far avoided fallout from U.S. and China markets.
Chairman Jean-Dominique Senard praised De Meo’s legacy, saying Renault had returned to a “healthy foundation” with “an impressive range of products and resumed growth.”
Still, with Renault 15% owned by the French government, the CEO vacancy places pressure on the company to quickly stabilise leadership ahead of a crucial phase for its electrification and mobility strategy.
– With inputs from Bloomberg
