Renault Group’s CEO Luca de Meo attends the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025. REUTERS
The logo of French luxury group Kering is seen at the company’s headquarters in Paris, France, April 24, 2025. REUTER
PARIS, June 16 (Reuters) – Kering shares jumped as much as 8.2% early on Monday and stocks in Renault fell over 6% after reports the French carmaker’s CEO Luca de Meo was poised to become the new head of the luxury goods maker.Renault said late on Sunday that De Meo would leave the company in mid-July “to take on new challenges outside the automobile sector”.
De Meo turned around the French automaker in five years at the helm, overhauling its two-decade-long strategic alliance with Nissan and doubling down on hybrid motors while shifting towards electric vehicles.
The Italian is set to replace Kering CEO Francois-Henri Pinault, whose family controls the heavily indebted luxury conglomerate and who has been leading it for 20 years, Le Figaro newspaper first reported.
Le Monde newspaper said, without citing sources, that Kering was expected to announce de Meo’s appointment after market close on Monday.
Kering declined to comment on the reports.
If confirmed, de Meo’s move to Kering, whose plans to turn around its Gucci label have failed to convince stock market investors, would mark a dramatic change. Pinault would remain Kering’s chairman.
“Brand management and marketing are his forte,” Bernstein analyst Luca Solca said of de Meo, “which dovetails with what the luxury industry does – for which he seems passionate.”
TURNAROUND NEEDS
De Meo joined Renault from Volkswagen (VOWG.DE), in 2020, a year when the French carmaker reported record losses after a pandemic-induced hit to sales.
He launched wide-ranging cost cuts that sharply reduced headcount and production capacity worldwide and turned the firm into a smaller but nimbler company. He also oversaw a reshaping of Renault’s often difficult relationship with Nissan.
The French state holds a 15% stake in Renault.
“De Meo is perceived to have largely contributed to Renault’s turnaround through product newness, technological innovation, EV transition shift, brand elevation, and a return to growth and profit,” Citi analysts wrote.
Under Pinault’s leadership, the group became a pure luxury player and enjoyed years of spectacular growth driven largely by Gucci. But since the pandemic, Kering has struggled to reinvigorate the brand.
It has also taken on more than 10 billion euros in debt which now exposes it to the risk of another credit ratings downgrade, Reuters reported last month.
“We believe it’s premature to adopt a more positive stance given the lack of visibility on Gucci’s turnaround. There is still a considerable amount of work ahead,” said Citi analyst Thomas Chauvet.
Kering cancelled an event with analysts planned for Monday without saying why, a person familiar with the matter said.
De Meo’s unexpected departure marks the second top-level exit from a European carmaker in six months, after Carlos Tavares resigned from Stellantis.
Europe’s autos sector is reeling from U.S. President Donald Trump’s trade tariffs and fierce competition from Chinese rivals.
Additional reporting by Gilles Guillaume in Paris, Danilo Masoni in Milan; Writing by Ingrid Melander; Editing by Richard Lough and Catherine Evans
