*

De Meo oversaw post-pandemic turnaround at Renault

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Le Figaro reports he will take over from Pinault as Kering

CEO

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Pinault has been mulling splitting CEO, chairman roles,

source

says

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Kering's Gucci label has been struggling

By Tassilo Hummel

PARIS, June 15 (Reuters) - Renault CEO Luca de

Meo is leaving the French carmaker to pursue a role outside the

auto industry, the company said on Sunday, and newspaper Le

Figaro reported he would become the new chief executive of

Gucci-owner Kering.

De Meo turned around the troubled French automaker in his five

years at the helm, overhauling its two-decade-long strategic

alliance with Nissan ( NSANF ) and doubling down on hybrid motors

while shifting towards electric vehicles.

The Italian will replace Kering CEO Francois-Henri Pinault,

whose family controls the heavily indebted luxury conglomerate

and who has been leading it for 20 years, Le Figaro reported.

Kering declined to comment on Le Figaro's report.

"Luca de Meo has expressed his decision to step down in order to

take on new challenges outside the automotive sector," Renault

said in a statement.

De Meo will leave Renault in mid-July, Renault added. The French

state holds a 15% stake in the company.

If confirmed, de Meo's move to Kering, which has lately failed

to convince stock market investors of its plans to turn around

its Gucci label, would mark a dramatic change at the

group. Pinault would remain Kering's chairman.

Speculation about the leadership of the group, which also owns

the Yves Saint Laurent and Balenciaga labels, accelerated last

week after French media reported Pinault was poised to give up

the CEO role.

A person familiar with the thinking of Pinault told Reuters on

Friday he was actively working on his succession, which includes

splitting up the two roles to hire a new CEO.

Kering shares have lost more than 60% of their value in the last

two years, marked by a string of profit warnings and designer

changes at Gucci, a former cash cow for the company and still

its most important brand by sales and profits.

TURNAROUND ARCHITECT

De Meo's unexpected departure marks the second top-level exit

from a European carmaker in six months, after Carlos Tavares

resigned from Stellantis ( STLA ), at a time the sector in

Europe is reeling from U.S. President Donald Trump's trade

tariffs and fierce competition from Chinese rivals.

De Meo joined Renault from Volkswagen in 2020, a

year when the French carmaker reported record losses after a

pandemic-induced hit to sales.

In the years since, De Meo launched wide-ranging cost cuts

that sharply reduced headcount and production capacity worldwide

and turned the firm into a smaller but nimbler company.

Renault's focus on European markets has largely shielded it

from the upheaval tied to U.S. trade policies that German

carmakers like BMW and Mercedes-Benz are

facing.

Renault was one of only a few automakers not to issue a

profit warning last fall. Its shares are up about 90% over the

past five years, the best performing carmaker in Europe. Rival

Stellantis ( STLA ) is up 15% and VW is down 38%.

Kering faces its own turnaround needs.

Under Pinault's leadership, the group became a pure luxury

player and enjoyed years of spectacular growth, largely thanks

to Gucci. But since the COVID-19 pandemic, Kering has struggled

to reinvigorate the brand and also took on more than 10 billion

euros in debt which now exposes it to the risk of another credit

downgrade, Reuters reported last month.

Kering unexpectedly cancelled an event with analysts

planned for Monday, without saying why, a person familiar with

the matter said.