Renault boss quits after warning of threat from Chinese rivals

Telegraph

5 hours ago

The boss of French state-backed car giant Renault has quit unexpectedly after warning that European manufacturers were struggling to compete with cut-price Chinese rivals.
Renault announced on Sunday night that Luca de Meo would step down after five years at the helm of the French car company. He will reportedly join Kering, the luxury goods conglomerate behind brands including Yves Saint Laurent and Gucci.
Mr De Meo said: 'There comes a time in one's life when one knows the job is done.'
The shock resignation, which will come into effect in mid-July, came just days after Mr De Meo gave an update to Renault's board on his latest five-year plan.
The new strategy, dubbed 'Futurama', covers plans for future models as well as potential diversification into new areas including defence.
Blindsided
Mr De Meo's departure is thought to have blindsided members of Renault's board. Shares in Renault, whose biggest shareholder is the French state with a 15pc stake, dropped 8pc on Monday.
Mr De Meo, an Italian car executive who previously held senior roles at Volkswagen, joined Renault in 2020.
He was tasked with steering the carmaker through a pandemic-induced sales slump, which prompted a record €8bn (£6.2bn) loss. During his tenure, Mr De Meo carried out major job cuts and reduced the company's production capacity worldwide.
But alongside its domestic rivals, Renault is now battling a slowdown in sales amid growing competition in the electric vehicle (EV) market from cheap Chinese rivals.
Mr De Meo has repeatedly called for the EU to relax regulations to help the bloc compete, while saying the industry should 'find a deal' with China.
The comments risked putting the executive at loggerheads with Emmanuel Macron, whose presidential car is made by Renault. Mr Macron split with his German counterpart last year when he backed EU tariffs on Chinese EVs.
Despite the threat from China, Renault has remained relatively insulated from Donald Trump's car tariffs thanks to the company's heavy focus on European markets.
Mr De Meo's resignation is the second high-profile departure from Europe's car industry in recent months. Carlos Tavares, chief executive of Citroen and Vauxhall owner Stellantis, stood down at the end of last year.
Leadership vacuum
The looming leadership vacuum will pose a challenge to Jean-Dominique Senard, Renault chairman, a seasoned industrialist who joined the carmaker in the wake of the high-profile arrest of Carlos Ghosn, the former chief executive.
Renault said it had already started the process of appointing a new chief executive 'based on the already defined succession plan'.
Mr Senard said: 'For five years, Luca de Meo has worked to restore Renault Group to its rightful place. Under his leadership, our company has returned to a healthy foundation, boasts an impressive range of products and has resumed growth.
'Besides being an exceptional captain of industry, Luca de Meo is also a creative, committed, passionate and inspiring individual.'
Mr De Meo is now poised to join Kering at a torrid time for the luxury goods giant as waning demand among Chinese shoppers has hit sales.
Gucci, the group's largest brand by revenues and profits, has been a particular laggard as wealthy shoppers have shunned its loud designs in favour of more minimalist luxury styles.
Shares in Kering jumped 9pc on reports the company is planning to name Mr De Meo as its new boss. However, they remain down by more than two thirds in the last two years.