Renault In Spotlight As CEO Steps Down, Nissan To Scale Back Ownership

Renault Group announced that CEO Luca de Meo will step down on July 15, marking the end of a five-year tenure that saw him steer the French automaker through a major turnaround.

Renault ADRs closed 2.5% lower at $9.83 on Friday.

The company said de Meo is leaving to pursue new opportunities outside the automotive sector.  

It also confirmed that a formal process is underway to appoint a new Chief Executive Officer, based on an existing succession plan.

Kering reportedly plans to appoint De Meo as chief executive while he manages its portfolio companies, including Gucci, Yves Saint Laurent, and Balenciaga.

Under De Meo's leadership, Renault managed to lower expenses and improve operational efficiency while transforming its relationship with Nissan.

Renault benefited from his assistance in pushing for hybrid vehicle development and accelerating its shift towards electric vehicles.

Separately, Nissan Motor plans to reduce its stake in Renault, according to comments by CEO Ivan Espinosa reported by Nikkei.

Nissan may sell its entire 5% holding, potentially raising about 100 billion yen ($640 million), which it intends to use for new vehicle development amid challenging conditions.

Renault ADRs have gained 2.8% so far this year.

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