Renault Shares Drop 7% as CEO Luca de Meo Prepares Exit for Kering

Renault CEO Luca de Meo announced he will step down on July 15, 2025, to become the new CEO of struggling luxury conglomerate Kering, leading to a sharp decline in Renault's shares by around 7-8%. De Meo, credited with revitalizing Renault through strategic improvements and overseeing a significant stock price recovery during his five-year tenure, is expected to help address Kering's recent financial difficulties, including a steep drop in Gucci sales and an 80% share price loss since 2021. Kering's current CEO, François-Henri Pinault, plans to retain his role as president while separating the CEO position. Renault's board, led by Chairman Jean-Dominique Senard, has initiated the search for a successor amid market uncertainty and ongoing challenges in the automotive sector, including competition and the transition to electric vehicles. The news comes at a time of broader European market caution due to geopolitical tensions and changes in the Renault-Nissan partnership, which has announced a reduction in its stake in Renault. Both companies expressed confidence in their strategic plans and teams to maintain momentum during this leadership transition.