In a surprising move in the global market, Luca de Meo, until recently CEO of Renault, was announced as the new chief executive of Kering, the luxury conglomerate that owns brands like Gucci, Yves Saint Laurent, and Balenciaga. The transition, confirmed on June 16, 2025, marks de Meo’s departure from the French automaker in mid-July, with his appointment at Kering scheduled for September 15. The decision comes amid financial challenges faced by the luxury group, which aims to reverse Gucci’s declining sales and manage a debt exceeding 10 billion euros. The unexpected appointment boosted Kering’s shares by 12.4%, while Renault’s plummeted 8.1%. The Italian, known for his ability to restructure companies, takes over from François-Henri Pinault, who will remain as chairman.
De Meo’s shift to the luxury sector, after over three decades in the automotive industry, reflects Kering’s bold bet on his ability to replicate the success achieved at Renault. During his five years leading the automaker, he spearheaded a restructuring that doubled the company’s market value and strengthened its position in the electric vehicle segment. The appointment also signals a strategic reconfiguration in the conglomerate’s governance, initiated by Pinault in 2023.
- Key transition milestones:
- Luca de Meo’s departure from Renault on July 15, 2025.
- Appointment as Kering’s CEO on September 15, 2025.
- Market reaction: 12.4% rise in Kering shares, 8.1% drop in Renault shares.
- Core objective: Kering’s financial recovery and Gucci’s revitalization.
The announcement, though unexpected, was met with optimism by analysts, who highlight de Meo’s experience in turning around struggling brands. His tenure at Renault, where he implemented cost cuts and redefined strategic partnerships, is seen as a strength to tackle Kering’s challenges.
Luca de Meo’s automotive journey
Born in Milan, Luca de Meo built a 30-year career in the automotive industry, with stints at giants like Toyota, Fiat, Volkswagen, and Renault. Since July 2020, he led Renault, navigating a scenario of record losses post-pandemic. Under his leadership, the automaker reduced operating costs, cut 15,000 global jobs, and repositioned its product lineup, focusing on hybrid and electric vehicles. The alliance with Nissan, which faced tensions, was restructured, ensuring greater autonomy for the brands.
De Meo also spearheaded the creation of Ampere, Renault’s electric vehicle division, between 2023 and 2025, establishing the company as a leader in Europe’s sustainable mobility market. His strategic vision earned Renault the title of Europe’s most valued automaker, with a 90% rise in its shares over the past five years.
Why did Kering choose an outsider?
The decision to hire an executive with no direct luxury sector experience sparked debates among analysts. Kering, facing a $11.5 billion debt and a 19% drop in its shares in 2025, needed a leader with proven restructuring skills. De Meo, described as a “creative and decisive” manager, was chosen for his ability to transform companies in crisis, a profile Kering deems essential to revitalize Gucci, its primary revenue source.
Gucci, once the group’s financial engine, faces declining sales, particularly in China, where demand for luxury goods has waned. The brand also struggled with the departure of creative directors and strategic decisions that failed to resonate with consumers. For Bernstein analysts, de Meo’s expertise in marketing and brand management may offset his lack of sector experience.
- Immediate challenges for de Meo at Kering:
- Reduce the group’s debt, estimated at 10 billion euros.
- Restore Gucci’s competitiveness in the Asian market.
- Restructure the creative management of the portfolio’s brands.
- Boost investor confidence after years of underperformance compared to rivals like LVMH.
Market reactions to the transition
The announcement of de Meo’s exit from Renault and move to Kering shook financial markets. Kering’s shares recorded their largest daily gain since 2008, reflecting investor confidence in the new CEO’s capabilities. Conversely, Renault faced a significant drop, with JP Morgan analysts noting that de Meo’s departure could delay the automaker’s strategic plans, such as the “Futurama” program unveiled days before his resignation.
In the Paris Stock Exchange, the opening session on June 16 revealed the news’ immediate impact. While Kering saw its stock rise over 6% in the first hours, Renault lost 5% at the opening, with investors concerned about the lack of an immediate successor.
What changes at Renault with de Meo’s exit?
De Meo’s departure leaves Renault at a delicate moment. The automaker, 15% owned by the French government, avoided profit warnings in 2024, unlike European competitors, and set ambitious goals for 2025. The search for a new CEO has begun, with names like Denis Le Vot, head of Dacia, and Maxime Picat, from Stellantis, being considered.
The restructuring led by de Meo left Renault leaner, with an updated product range and a focus on electrification. However, his exit raises questions about the continuity of his strategic vision. The alliance with Nissan, now more stable, and partnerships with companies like Geely may also be impacted.
François-Henri Pinault’s role in the new structure
François-Henri Pinault, who led Kering for two decades, will remain as chairman, ensuring the founding family’s influence. Since 2023, Pinault had been planning a governance overhaul, seeking a leader capable of tackling financial and creative challenges. De Meo’s selection reflects his confidence in an executive with experience in complex transformations.
Pinault, whose father, François Pinault, turned Kering into a global luxury powerhouse, now faces the challenge of supporting de Meo in a highly competitive sector. The transition comes as rivals like LVMH and Hermès maintain steady growth, while Kering struggles to regain its footing.
Betting on a new leadership model
De Meo’s appointment marks the first time Kering will be led by an executive from outside the luxury sector. His arrival is seen as an attempt to break with strategies that failed in recent years. De Meo’s expertise in innovation and global brand management will be tested in a market where consumer perception is as critical as product quality.
The executive has already expressed enthusiasm for the new challenge, highlighting the strength of Kering’s brands and the quality of its teams. His experience in Milan, a global fashion hub, may help him navigate the group’s creative universe.
How can Gucci benefit?
Gucci, responsible for much of Kering’s revenue, will be de Meo’s primary focus. The brand has faced challenges since the post-pandemic period, with declining sales and criticism of its creative direction. De Meo’s ability to reposition brands, as seen with Seat and Renault, will be crucial to restoring Gucci’s status as a luxury icon.
- Expected strategies for Gucci:
- Strengthen the brand’s visual identity with collections aligned with global trends.
- Expand in the digital market, where Gucci has lost ground to competitors.
- Focus on emerging markets like India and the Middle East.
A milestone in the luxury industry
Luca de Meo’s arrival at Kering represents a turning point for the sector. His successful track record at Renault, combined with the boldness of entering a completely new market, places the executive in the spotlight. The transition, bridging two distinct worlds like automotive and luxury, also underscores the growing trend of companies seeking leaders with external perspectives to tackle crises.
The focus now is on how de Meo will steer Kering in a landscape of fierce competition and rapidly changing consumer preferences. His ability to turn challenges into opportunities will be tested starting in September, when he officially takes the helm of the conglomerate.
Next steps for Kering
With de Meo’s appointment set for September, Kering has begun preparing for his arrival. Meetings with investors and analysts have been postponed to align with the group’s new strategies. The company also plans to strengthen its market communication, highlighting de Meo’s plans for Gucci and other portfolio brands.
Renault’s appointment of a new CEO, meanwhile, will be closely watched, as the automaker faces pressure to maintain its growth pace. The future of both groups, now linked by de Meo’s figure, promises to shake up the automotive and luxury sectors in the coming months.