Paris (AFP) – French auto giant Renault said Wednesday that Francois Provost, currently in charge of procurement, would take over as chief executive following Luca de Meo’s departure in June. His appointment comes as Renault confronts fierce competition that has weighed on profit margins as the industry shifts toward electric vehicles.
De Meo quit in June to take over at French fashion conglomerate Gucci, prompting criticism from some unions that he was abandoning his efforts to reposition Renault for the coming challenges after five years on the job. Procurement director Prevost, 57, has been with Renault for 23 years and was one of De Meo’s closest advisors, in particular for his “Renaultution” strategic plan.
“Francois Provost will lead the group with discernment and determination in an environment that demands both rigour in execution, strategic vision, and the ability to innovate,” board chairman Jean-Dominique Senard said ahead of Renault’s first-half earnings Thursday.
In July, the company lowered its operating profit forecast to “around 6.5 percent” from seven percent previously, citing “anticipation of the continuation of the retail market decline.” The company has said it will prioritise value creation over volume, after sales rose 2.5 percent in the first half to 27.6 billion euros ($32 billion).
“Renault Group benefits from strong fundamentals, with committed teams, an outstanding range of products, strong brands, and an innovative organisational model,” Provost said in a statement. “These will be invaluable assets as we accelerate our transformation in an increasingly demanding environment.”
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