Unlock the Editor’s Digest free of charge
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.
Luca de Meo is to step down as chief government of Renault, as Kering hires the 58-year-old Italian to spearhead a turnaround of the struggling French luxurious group, in accordance with individuals briefed on the plan.
The appointment marks a pointy break with established apply at Kering, proprietor of the Gucci and Saint Laurent manufacturers, which has been led by a member of the controlling Pinault household for 2 generations.
The corporate’s poor efficiency in recent times has raised questions on its administration and technique.
Kering’s outgoing chief government François-Henri Pinault, 63, can be the corporate’s chair and has determined to separate the roles, the individuals with data of the state of affairs mentioned. It was unclear whether or not Pinault will stay chair.
Kering declined to remark. De Meo’s deliberate departure from Renault to steer Kering was first reported by French newspaper Le Figaro.
Kering’s shares have misplaced round 70 per cent of their worth over the previous three years, leading to a market capitalisation of €21bn, as a turnaround at Gucci, the corporate’s largest supply of revenues and income, didn’t materialise.
A string of high-priced acquisitions and actual property offers by Kering additionally unnerved traders, as did the appointment this yr of controversial former Balenciaga designer Demna to be artistic director of Gucci.
In an announcement on Sunday, Renault mentioned de Meo will “pursue new challenges exterior the automotive sector” however will stay in place on the firm till July 15. De Meo couldn’t instantly be reached for remark.
Since turning into Renault chief government in 2020, de Meo has considerably strengthened the French carmaker’s product portfolio and price construction, reworking it into among the best performing firms within the sector regardless of its restricted measurement.
Its Europe-focused geographic footprint has additionally left it comparatively unscathed from US President Donald Trump’s sweeping tariffs, in addition to elevated competitors from China, in comparison with bigger rivals reminiscent of Stellantis and Volkswagen.
The automotive business has witnessed a collection of high management adjustments over the previous yr with Stellantis, Nissan and Volvo Automobiles all appointing new chief executives whereas the sector wrestles with the transition to electrical automobiles and the rise of Chinese language rivals.
Renault’s board has begun the method of appointing a brand new chief government, the corporate mentioned.
“The board of administrators has expressed its confidence within the high quality and expertise of the administration workforce to proceed and speed up Renault group’s transformation technique into this new section,” it added.