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Those who described the plan say that Luca de Meo will step down as Renault’s CEO as Renault’s CEO.
The departure led to Renault’s shares falling 7% in early trading on Monday, while Kering fell 9.4%.
The appointment of De Meo, 58, marks a major change for Kering, the owner of Gucci and Saint Laurent brands. There, François-Henri Pinault, a member of the group’s dominant family, was chairman and chief executive officer for 20 years.
Kering’s performance decline in recent years has raised questions about its management and strategy.
Pineau, 63, has decided to split the roles of Kering’s chairman and chief executive, people with knowledge of the situation said. It was unclear whether Pineau would remain a chair.
Kering declined to comment. The planned departure from Renault for De Meo to lead Kering was first reported by the French newspaper Le Figaro.
Kering’s shares have lost roughly 70% of their value over the past three years, reaching a market capitalization of 21 billion euros. This was not possible as a turnaround at Gucci, the company’s biggest revenue and profit source.
Kering’s string of expensive acquisitions and real estate transactions are also anxious investors, just like Demna, a former Balenciaga designer of the year, has been appointed to become Gucci’s creative director.
In a statement Sunday, Renault said that De Meo will “pursuing new challenges outside the automotive sector” will remain with the company until July 15th. De Meo could not be immediately contacted for comment.
Since becoming Renault’s CEO in 2020, De Meo has significantly strengthened the product portfolio and cost structure of the French automaker, transforming it into one of the sector’s most performant companies despite its limited size.
The European-focused geographic footprint remains relatively intact from President Donald Trump’s sweeping tariffs, leaving China with increasing competition compared to its larger rivals such as Stellantis and Volkswagen.
The automotive industry has witnessed several top leadership changes over the past year. The cars of Starlantis, Nissan and Volvo have appointed new CEOs, and the sector is tackling the transition to electric vehicles and the rise of Chinese rivals.
Renault’s board has begun the process of appointing a new chief executive, the company said.
“The board has expressed confidence in the quality and experience of our management team to continue and accelerate Renault Group’s transformation strategy into this new phase,” he added.
