Renault CEO Luca de Meo Exits to Lead Luxury Group Kering After Five-Year Turnaround
Automotive Maverick to Fashion Disruptor: De Meo's Shocking Leap from Renault to Kering
A seismic shift rocks two industries as an automotive turnaround specialist prepares to tackle luxury's toughest challenge
Renault announced Sunday that CEO Luca de Meo would step down after a transformative five-year tenure. The automotive executive who orchestrated Renault's remarkable renaissance is poised to take on an even more daunting challenge – reviving the fortunes of luxury powerhouse Kering, owner of struggling fashion icon Gucci.
The announcement, confirming de Meo will depart Renault on July 15, marks one of the most dramatic executive transitions in recent corporate history – bridging two industries that rarely share leadership talent.
The "Renaulution" Architect Seeks New Canvas
Since joining Renault in 2020 after leading Seat-Cupra, de Meo has been credited with breathing new life into the French automaker through his ambitious "Renaulution" strategy. Under his stewardship, Renault transformed from a company on life support to one of Europe's most dynamic automotive groups.
"I leave behind a transformed company," de Meo stated, pointing to "the best results in our history" and a firm "poised for the future."
His legacy includes resurrecting the iconic Renault 5 as an electric vehicle, introducing successful new SUVs, and reimagining Alpine as an electric performance brand with Formula 1 connections. The company's strategic pivot extended to rebranding its Formula 1 team and restructuring its partnership with Nissan, moves that stabilized what had been a precarious alliance.
Industry recognition came swiftly, culminating in de Meo receiving the prestigious Issigonis Trophy at the 2024 Autocar Awards. As president of the European Automobile Manufacturers' Association , he emerged as a formidable advocate for European carmakers facing intensifying competition from China.
Career History of Luca de Meo
| Company / Organization | Position / Role | Timeline | Key Achievements | Key Failures & Challenges |
|---|---|---|---|---|
| Kering | CEO | Post-July 2025 | (Future role) | Inherits a struggling group with lagging sales, brand issues (Gucci), and potential cultural friction. |
| Renault Group | CEO | 2020 – July 2025 | • Led "Renaulution" corporate turnaround. • Restored finances and launched key EVs. • Transformed Alpine into a performance brand. | • Surprise departure created leadership uncertainty. • Left before completing strategic projects like the Ampere IPO. |
| ACEA | President | Not specified | Advocated for European carmakers against foreign competition, particularly from China. | (None specified) |
| Seat-Cupra | Leadership Role | Before 2020 | Led a successful tenure, using a data-driven approach to product design. | (None specified) |
Kering's Desperate Search for Salvation
While Renault's board has activated a succession plan, attention has shifted to de Meo's reported destination. French newspaper Le Figaro identified Kering as his landing spot, though the luxury conglomerate has declined to comment on the speculation.
The potential appointment comes at a critical juncture for Kering. The luxury group has watched its market value plummet more than 60% over the past two years amid profit warnings and creative turmoil at Gucci, which accounts for approximately half of the company's revenue.
Sources familiar with Kering's strategy suggest chairman François-Henri Pinault has been actively working on succession planning that would split the chairman and CEO roles – creating an opening for de Meo to take operational control while Pinault maintains strategic oversight.
"Kering desperately needs fresh eyes and operational discipline," an industry analyst who requested anonymity told this publication. "The luxury business model is being challenged in ways we haven't seen before, particularly in China, and the old playbook isn't working anymore."
Table: Key Challenges Facing Kering in 2025
| Challenge Area | Description |
|---|---|
| Financial & Debt | High debt from acquisitions, falling share price, risk of further credit downgrades |
| Gucci & Brand Weakness | 25% sales drop at Gucci, lack of creative direction, investor skepticism |
| Market Volatility | Declining sales in China, US tariff threats, global economic uncertainty |
| Operational Complexity | 10+ brands with distinct supply chains, inefficiencies, rising production costs |
| Regulatory & Sustainability | Stricter EU regulations, need for sustainable practices, resource-intensive compliance |
| Brand Reputation | Balenciaga scandal, crisis management, leadership transitions |
When Automotive Meets Haute Couture: Brilliant Disruption or Cultural Collision?
De Meo's potential appointment represents a high-stakes gamble that automotive efficiency can translate to luxury's artisanal world. His credentials as a turnaround specialist are unquestioned, but some industry observers question whether his experience aligns with luxury's unique dynamics.
"The luxury sector operates on emotion and exclusivity – metrics that can't be easily quantified on a spreadsheet," noted a former luxury executive now working in private equity. "De Meo's data-driven approach revolutionized Renault, but Gucci customers don't buy handbags based on the same rational calculations as car shoppers."
Others see his outsider perspective as precisely what Kering needs. At Renault, de Meo demonstrated an exceptional ability to balance heritage with innovation, successfully relaunching nostalgic models like the Renault 5 while embracing electrification. This talent for respecting brand DNA while driving modernization could prove invaluable at Gucci, which has struggled to maintain its cultural relevance without diluting its storied heritage.
His digital transformation expertise also addresses one of Kering's most glaring weaknesses. Under de Meo, Renault prioritized data-driven decision-making and technological partnerships that could accelerate Kering's digital capabilities, an area where it lags behind luxury market leader LVMH.
Market Tremors and Investment Ripples
Financial markets will be watching closely as this dramatic transition unfolds. Renault shares have outperformed the CAC 40 index with a 21% gain year-to-date, while Kering has languished as the luxury sector's laggard, falling 38% in the same period.
"For Kering investors, this represents the first genuine reason for optimism in years," suggested a portfolio manager at a European asset management firm. "The stock is trading at 23 times forward earnings compared to LVMH at 20 times, despite dramatically underperforming. If de Meo can implement even half of his operational playbook, the potential upside is substantial."
Analysts project that successful implementation of cost discipline and SKU rationalization could boost Kering's operating margins from the current 17% to potentially 24% within three years, driving share price appreciation of up to 65% from current levels.
For Renault, the transition poses less dramatic risks. Trading at just 6-7 times forward earnings versus the sector median of 9 times, the company's valuation provides a cushion against leadership uncertainty. The pre-established succession plan and strong management bench, including CFO Thierry Piéton who has been described as "COO in all but name," should ensure continuity.
Tomorrow's Winners: Where Smart Money Might Flow
For investors navigating this corporate earthquake, opportunity may lie in asymmetric risk-reward scenarios. Kering's dramatic underperformance has created a potential value proposition if de Meo can translate his automotive turnaround expertise to luxury retail.
The most compelling approach may involve options strategies that capitalize on Kering's expected volatility while providing downside protection. Analysts suggest selling cash-settled puts at the €150 strike price (December 2025), which would collect substantial premium while setting an entry point at 0.9 times book value.
For Renault, any significant post-announcement dip may present buying opportunities, particularly given the company's healthy free cash flow yield of approximately 13% and the upcoming Ampere EV unit IPO scheduled for Q4 2025.
Upcoming catalysts to monitor include Kering's H1 trading update on June 24, which could provide the first glimpse of the company's new strategic direction, and September's Paris Fashion Week, where Gucci's Spring/Summer 2026 collection will serve as a bellwether for the brand's creative trajectory under new leadership.
As one market strategist summarized: "The smart play is going long disruption, short complacency – positioning for Kering's potential renaissance while recognizing that Renault's transformation remains on solid footing despite the leadership transition." \Here’s a comprehensive summary table of your investor-focused assessment of Luca de Meo’s potential move from Renault to Kering, highlighting the core factors for professional investors:
Luca de Meo (LdM) Jump – Investor Implications
| Theme | Renault (RNO) | Kering (KER) |
|---|---|---|
| Event | CEO exit after 5-year turnaround (“Renaulution”) | Rumoured incoming CEO with ops-heavy playbook |
| YTD Share Price | +21% (beats CAC 40) | -38% (lagging sector) |
| Valuation | P/E ≈ 6–7× vs sector median 9× | P/E ≈ 23× vs LVMH 20×, Hermes 50× |
| Pre-event Equity Story | Rerating via Ampere EV carve-out, Alpine monetisation | “Fix Gucci” + post-€15B M&A leverage |
| Key Risk Now | CEO misstep derails re-rating | Culture misfit damages brand equity/margins |
| LdM Strengths | N/A | - Zero-based ops discipline - Ecosystem deal-making - Data-led creative filtering |
| LdM Limitations | N/A | - Weak luxury DNA - Limited CEO autonomy (Pinault control) - Complexity of multibrand ops |
| Kering Base/Bull/Bear | N/A | Bull: 24% margin, 18× EV/EBIT → +65% Base: 21%, 16× → +25% Bear: 17%, 13× → –30% (vs €173 spot) |
| Renault Risk Mitigants | Strong CFO bench, execution de-risked, low valuation | N/A |
| Renault Risk Factors | Ampere IPO timing, Nissan governance, Alpine F1 optics | N/A |
| Tactical Take | Buy >5% dip; SoTP intact at €60 | Start with Jan-27 call (financed by Jul-25 call write) |
| Sector/Macro Angle | Cheap FCF yield (13%), safe vs Stellantis | Reversion candidate in luxury rotation; ESG optionality via closed-loop/sustainability |
| Key Trades | - Long RNO vs Short STLA - Add on overreaction | - Long KER + covered-call - Sell CHF puts (Dec-25, 150 strike) - Hedge with short LVMH |
| Catalysts (12 mo) | - CEO departure (mid-July) - Ampere IPO (Q4) | - H1 update (24-Jun) - Fashion Week (Sep-25) - CEO tone-setting |
| Bottom Line | Succession priced, industrial plan intact – buy dips | LdM may bring execution edge; optionality is asymmetric but must wait 12–18m for proof; protect downside via options strategy |
NOT INVESTMENT ADVICE