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Luca de Meo is to step down as chief executive of Renault, as Kering hires the Italian to spearhead a turnaround of the struggling French luxury group, according to people briefed on the plan.
The departure sent shares in Renault tumbling 7 per cent lower in early trading on Monday, while Kering rose 5 per cent.
The appointment of de Meo, 58, marks a big change at Kering, owner of the Gucci and Saint Laurent brands, where François-Henri Pinault, a member of the family that controls the group, has been chair and chief executive for 20 years.
Kering’s poor performance in recent years has raised questions about its management and strategy.
Pinault, 63, has decided to split the roles of chair and chief executive at Kering, the people with knowledge of the situation said. It was unclear whether Pinault would remain chair.
Kering declined to comment. De Meo’s planned departure from Renault to lead Kering was first reported by French newspaper Le Figaro.
Kering’s shares have lost about 70 per cent of their value over the past three years, resulting in a market capitalisation of €21bn, as a turnaround at Gucci, the company’s biggest source of revenues and profits, failed to materialise.
A string of expensive acquisitions and real estate deals by Kering also unnerved investors, as did the appointment this year of controversial former Balenciaga designer Demna to be creative director of Gucci.
In a statement on Sunday, Renault said de Meo will “pursue new challenges outside the automotive sector” but will remain in place at the company until July 15. De Meo could not immediately be reached for comment.
Since becoming Renault’s chief executive in 2020, de Meo has significantly strengthened the French carmaker’s product portfolio and cost structure, transforming it into one of the best-performing companies in the sector despite its limited size.
Its Europe-focused geographic footprint has also left it relatively unscathed from US President Donald Trump’s sweeping tariffs, as well as increased competition from China, compared with larger rivals such as Stellantis and Volkswagen.
The car industry has witnessed several top leadership changes over the past year with Stellantis, Nissan and Volvo Cars appointing new chief executives while the sector wrestles with 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 of directors has expressed its confidence in the quality and experience of the management team to continue and accelerate Renault group’s transformation strategy into this new phase,” it added.
