Renault Group’s high-profile CEO, Luca de Meo’s resignation after a five-year tenure that steered the French carmaker through a critical recovery phase is likely to cause near-term uncertainty and pose questions about its transition from restructuring to a growth phase, analysts say.
In a surprise announcement made Sunday evening, Renault confirmed that de Meo will remain in his role until July 15, 2025, and has already initiated the search for his successor.
The announcement sent its shares tumbling by as much as 8% at the open on Monday, its biggest one-day percentage drop since February 2022, however the stock was back in the green on Tuesday.
Multiple reports suggest that the Italian executive will soon take over as CEO of French luxury conglomerate Kering, which owns brands such as Gucci and Balenciaga.
The move marks a significant shift from the automotive industry to luxury retail, and raises questions about the future direction of Renault at a time when the company was just emerging from crisis.
Luca de Meo’s transformative tenure at Renault and likely impact of his departure
CEO de Meo’s exit comes at a pivotal moment.
When he assumed leadership in mid-2020, Renault was reeling from a record first-half loss and undergoing a drastic restructuring effort that included plans to cut 15,000 jobs.
Since then, Renault’s share price has nearly doubled, its earnings margins hit record highs, and its lineup has been significantly revamped.
Renault’s lineup was “completely transformed” under De Meo, Stephen Reitman, an equity analyst at Bernstein with the equivalent of a buy rating on the stock, wrote to clients.
He called the CEO’s departure a shock and “unequivocally a blow to Renault.”
Adding to the leadership vacuum is the earlier resignation of CFO Thierry Pieton, another widely respected executive.
Analysts at Citi acknowledged Renault’s strong fundamentals—healthy free cash flows, a robust product pipeline, and improved profitability—but cautioned that the dual exits introduce an unwelcome layer of uncertainty.
They said that with Renault due to complete its restructuring plan and move to a new growth plan, the leadership uncertainty comes at an “unhelpful time”.
“Whilst we continue to believe that Renault earnings can be stronger for longer, with limited risks from China and tariffs, and the shares are close to year-lows now, it is inevitable this will make investors think twice,” they said.
Will the exit reshape Renault’s mid-term growth strategy?
With its restructuring plan nearing completion, Renault was expected to unveil a new mid-term growth strategy by the end of this year.
The roadmap was to focus on product innovation, scaling operations, and expanding beyond traditional car manufacturing.
However, the sudden top-level exits may force a rethink.
“The departure of Renault’s CEO might create some near-term uncertainty until a replacement is announced,” UBS analyst David Lesne wrote.
“The departure means that within five months, both the CEO and CFO will have left the company for opportunities outside of the auto sector. Both were seen by investors as among the best in the industry,” he said, adding that it will remain to be seen whether its mid-term plan will be changed by a new CEO.
Investors, already jittery amid global EV competition and geopolitical tensions, could grow even more cautious, experts say.
Despite strong performance post-pandemic, Renault still faces structural headwinds—ranging from the high cost of EV transition to mounting trade friction and aggressive moves by Chinese rivals in the European market.
Search begins for de Meo’s successor
Attention now turns to who will fill de Meo’s shoes.
Two leading names have emerged: Denis Le Vot, a long-serving Renault executive currently heading its budget Dacia brand, and Maxime Picat, currently overseeing global supply chains at Stellantis.
Both men are considered credible candidates with a track record of delivering on brand performance.
Le Vot, known for his work in emerging markets and at alliance partner Nissan, has helped Dacia thrive, with its Sandero and Duster models consistently ranking among Europe’s top sellers.
Picat, on the other hand, was previously head of Peugeot and played a key role in the launch of its bestselling SUVs.
Analysts at Kepler Cheuvreux and JP Morgan view both internal and external candidates as plausible, including seasoned executives from Stellantis, VW Group, or even Nissan.
While Renault has declined to comment on the succession process, sources close to Stellantis indicated that Picat, after missing out on the CEO role at his current employer, might be open to discussions.
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