Luca de Meo's Big Leap: From Revamping Renault to Steering Kering

Luca de Meo, Renault's CEO, is reportedly set to become the new head of luxury goods maker, Kering. This move marks a significant shift as Kering seeks a turnaround for its Gucci brand. De Meo brought significant changes at Renault, which may be what Kering needs now.

Kering shares saw an upsurge of up to 8.2% early Monday, while Renault's stocks dropped over 6% following reports suggesting Renault CEO Luca de Meo's imminent appointment as the new head of the luxury giant. Renault confirmed De Meo's departure by mid-July, citing his intentions to pursue opportunities outside the auto industry.

During his tenure at Renault, de Meo implemented significant shifts, including overhauling the brand's alliance with Nissan, advancing hybrid and electric vehicle strategies, and streamlining operations. His anticipated move to replace Kering CEO François-Henri Pinault highlights an industry shift from autos to luxury, looking to revive the faltering Gucci brand.

Reports suggest Kering's announcement might come post-market close on Monday. As Kering grapples with over 10 billion euros in debt and struggles to reignite its iconic Gucci label, De Meo's expertise in brand management could prove pivotal. This leadership transition also underscores a broader trend of executive upheaval in the European automotive sector.

(With inputs from agencies.)