Renault appoints procurement chief as new CEO as it announces A$19.9 billion loss

7NEWS

5 days ago

A month-and-a-half after the shock resignation of Luca de Meo, Renault has appointed François Provost as its new CEO.
Mr Provost (below) has been with Renault for 23 years, and has been chief procurement, partnerships and public affairs officer since 2023.
In 1994 he graduated with degrees from École polytechnique, and École des mines, France's leading engineering university.
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His first calling was public service, where he rose to become deputy secretary general of interministerial committee for industrial restructuring, and later a senior advisor in the ministry of defence.
Mr Provost jumped over to Renault in 2002, and served the company around the world, including stints as the chief of Renault Portugal and Renault Russia. In 2011 he became CEO of Renault Samsung before being put in charge of the automaker's Asia-Pacific operations in 2016.
As head of international development and partnerships from 2020, he helped engineer the company's wide-ranging partnership with Geely, which sees Renault South Korea manufacture restyled Geely Group vehicles, as well as jointly developing and producing internal combustion engines.
He also negotiated Renault's exit from Russia in the wake of its invasion of Ukraine in 2022, which saw the French automaker sell its majority stake in market-leading Lada back to Russian interests for a single rouble, or about two Aussie cents.
It's likely Mr Provost's experience with Renault's various international partners will be put the test in the coming years.
Along with news of his elevation to the top job, Renault announced a loss of €11.2 billion ($19.9 billion). Around €9.3 billion ($16.5 billion) of the loss is because Renault has changed the way it accounts for its stake in Nissan, which is now tied to the latter's share price.
A further €2.3 billion ($4.1 billion) in losses came from Nissan and its associated companies.
According to Automotive News, during his first investor call as CEO, Mr Provost said the automaker will need 'iron discipline' when deciding on investments.
He said the company is still aiming to expand outside of Europe, with key markets being Latin America and India. It will be interesting to see whether Mr Provost keeps investing Alpine, which is burning through cash as it seeks to establish itself as an all-electric competitor to Porsche.
Mr Provost has big shoes to fill. His predecessor, Luca de Meo, is widely credited with turning the automaker around. During his watch, the company revitalised its lineup of internal combustion engine vehicles, and launched a clutch of eye-catching and well-received electric cars, including the 5 E-Tech.
Mr de Meo resigned abruptly in the middle of June — although he didn't leave the company until mid-July — in order to take the reins at Kering, a luxury brand conglomerate that owns Gucci, Yves Saint Laurent, Balenciaga and others.