Renault plunges (-6%), Kering soars (+10%): stock market reaction to Luca de Meo's departure

French automotive group Renault plunged around 6% on the Paris Stock Exchange on Monday, following the announcement yesterday of Luca de Meo's departure as CEO , although the departure will not become effective for another month.

Renault 's downward trend contrasts with Kering's rise of around 10% , indicating that investors are accepting rumors pointing to the luxury conglomerate as De Meo's new target.

In its statement announcing his departure, Renault explained that the Italian executive is leaving the group to focus on " new challenges outside the automotive sector ," without specifying where.

But French media are pointing to Kering as a likely new home, given François-Henri Pinault 's decision to step down as president of his luxury conglomerate.

De Meo, 58, joined Renault from Seat (a Volkswagen Group brand) at a time when the company was going through a serious crisis with colossal losses.

He had been at the helm of the French car manufacturer for five years and had been reappointed as CEO of the company in May 2024, for a second four-year term, which was due to end in 2028.

De Meo's departure will be formalized on July 15 , and Renault 's board of directors has already initiated the process of appointing a new executive.