Paris (AFP) – The head of French carmaker Renault, Luca de Meo, is to quit “to take on new challenges outside the automobile sector,” the company said on Sunday. “After five years leading Renault Group, Luca de Meo has announced his decision to leave his position,” said a company statement, adding that his departure would take effect on July 15.
According to Le Figaro newspaper, de Meo will become the new chief executive of French luxury group Kering, owner of Gucci, Yves Saint-Laurent, Balenciaga, and other premium brands. Kering’s current chief executive is Francois-Henri Pinault, son of the group’s billionaire founder, Francois Pinault. Francois-Henri Pinault has announced a management shake-up that would see him stay on as chairman of the group.
Kering has been struggling to turn things around at Gucci, its flagship brand, which accounts for half of its overall sales. Gucci sales fell by 23 percent last year, contributing to a sharp plunge in net profits to 1.13 billion euros ($1.3 billion) for the group. The bad results for Gucci continued into the first quarter of this year, with another 24-percent sales slump compared to the same period last year. Contacted by AFP, Kering declined to comment on reports that it had recruited de Meo.
As head of Renault, de Meo has been key to the carmaker’s partnership with Japan’s financially troubled Nissan, which has been under tension over the past couple of years. Renault and Nissan said at the end of March they had revised their partnership to allow for a reduction in their cross-shareholdings from 15 percent to 10 percent, along with other measures.
The two carmakers have been partners since 1999 when Renault rescued Nissan from bankruptcy. However, numerous tensions emerged, particularly over Renault’s greater holding in Nissan, and in 2023 the carmakers worked to rebalance their alliance. Nissan announced last year thousands of job cuts after reporting a 93 percent plunge in first-half net profit, and it expects to post a loss of over $500 million for 2024. Renault said last month it expected to book a 2.2-billion-euro hit in the first quarter due to Nissan’s turnaround plan.
© 2024 AFP
