Renault CEO joins Kering, stock market reacts violently to transfer

It’s a move that has surprised the market — Renault CEO Luca de Meo is leaving the automotive industry to become the head of luxury empire Kering. What does this mean for both companies, and why have investors already reacted?

It’s not often that the CEO of a major automotive group abandons the world of horsepower for haute couture and luxury accessories. And yet — Luca de Meo , one of the architects of Renault’s rebirth, is preparing for a new challenge, this time in a completely different league. As of July 15, he’s leaving the French carmaker to take the helm at Kering , a group that owns such recognizable brands as Gucci, Saint Laurent and Balenciaga.

Luca de Meo/photo: Shutterstock

Although Kering itself has not yet commented on the reports, it is already known that the decision has caused quite a stir on the stock exchange. On Monday, June 16, Renault shares fell by 7%, while Kering's securities jumped by 5%. The market does not hide the fact that it sees in this move something more than just personnel changes - it is a signal of a profound change in strategy and an attempt to save the declining luxury giant.

The Fall of Luxury - Gucci's Value Is Taking a nosedive

Kering, despite a portfolio full of big names, has had a hard time in recent years. The group’s biggest jewel, Gucci, has seen a clear decline, and the entire company has lost nearly 70% of its market value . Kering’s capitalization has fallen to €21 billion , a serious blow for a company with such a heritage and aspirations.

The hiring of de Meo signals that François-Henri Pinault , the previous chairman and CEO, has finally decided to separate the two roles and open a new chapter in the history of the family business. While it is not yet known whether Pinault himself will remain chairman, one thing is certain: choosing a leader from outside the fashion world is a bold but surprisingly logical step. After all, de Meo is known for breathing life into stagnant organizations.

He turned Renault into a well-oiled machine, now it's time for Kering?

Since 2020, de Meo has managed to turn Renault into a force to be reckoned with again. He has rebuilt its position in Europe, strengthened its product offering and improved its cost efficiency. Interestingly, Renault — unlike competitors like Volkswagen and Stellantis — has managed to avoid the biggest troubles related to customs and Chinese expansion.

Meanwhile, the automotive industry is in the midst of a wave of change: new faces have already appeared at Nissan, Volvo Cars and Stellantis , among others. Renault is also not idle – its supervisory board has just begun a search for a new CEO, declaring full confidence in the current management team and the continuation of the transformation strategy.

Will de Meo tailor success to suit?

Moving from the automotive industry to the world of luxury may seem like a leap into the deep end, but perhaps that is exactly what Kering needs today – a fresh perspective, managerial discipline and… courage. Will Luca de Meo cope in a world where, instead of the CMF-EV platform , it will be necessary to manage the creative visions of art directors and the whims of the fashion market?

One thing is certain: in a world of big names, big brands and even bigger expectations, Luca de Meo has just entered a completely new track. This time, he won't be driving a car - but an entire empire of style.