Five. As the figure of the emblem of the car of its strategy, the R5. As the number of years that passed to Renault’s head. To everyone’s surprise, this Sunday, June 15, Luca de Meo announced that he will leave Renault for other horizons, away from the car.
The one who helped restore his cards of nobility (and his profits) to Renault was still this weekend in the 24 hours of Le Mans, to support Alpine, the sports brand of the group that is executed in resistance (together with Formula 1). No more tar than Sunday he still mentioned in the BFM Business Hydrogen microphone, a solution for Tomorrow Green Alpine and the car. Luxury can be its landing point: according to Le Figaro, Luca de Meo could take Kering reins.
Draw in the roots
You may put into practice one of your recipes: immerse yourself in the history of the brand to write the future. It was searching in the archives (and the design garages of the Technocentre) that revived the R5, the emblem of its recovery plan (called “Renaulution”), then the Renault 4 and tomorrow the Twingo. Who also found Rafale, a legendary aeronautical name that really has Renault and became a standard bearer of his SUV range. Because, through the Renaulution Plan, presented in January 2021, Luca de Meo gave you that you want to buy Renault. Not because when entering the concession, the price of the model had already taken a 20% discount to make sure to sell, but because the brand, throughout its history, has become desirable again.
The Italian address had already applied this recipe in Fiat, by contributing to the return of 500 in 2007. Luca de Meo will leave its duties before the launch of the next emblematic model, the Twingo, which will return next year assuming the lines of the first generation, but with a business model (less than 20,000 euros) and a development (ultra-Court, in 2 years, in the first generation with the laboratory of the group mounted in the group (less 20,000 euros) and a development (Ultra-Court, in 2 years, in the association with the group’s laboratory with the group’s laboratory. Luca de Meo has raised the heart of the group’s rank to major more profitable cars, reorienting it more towards segment C (the compact minivans) to the detriment of B (city cars).
This restoration of the range has doubled a recovery in finance. Luca de Meo took advantage of a reduction in fixed costs, which had been launched before his arrival by the financial director of the Era Clotilde delbos, helped by the director of Engineering, Gilles Borgne.
The manager also redirected sales to the most profitable channels, such as people, instead of others less profitable, such as commercial fleets and rental companies.
Record margin
“Renault has made significant reductions in variable and fixed expenses and investments, which made it possible to ‘defeat’ the activities of Coeur de Comercio,” Jefferies said in a February note.
From now on, “Renault is very advanced in its repositioning to remain competitive in the current transition from the industry, by separating thermal motor activities and the electric motor, and accelerating investments in software and carbon neutrality,” said the bank at the beginning of the year.
The renunciation of the Ampère qualification, the Renault Electric subsidiary, has also marked the spirits. Ampère was one of Luca de Meo’s emblematic projects.
With a negative margin of 3.2% of the automotive division in 2020, when Luca de Meo assumed the position, Renault registered one to 5.4% last year. Ultimately, his mandate in Renault resulted in a record margin of 7.9% (throughout the group) in 2023, a rate that remained at 7.6% last year, while it was -0.8% in 2020, a year marked by the pandemic.
A force that allowed Renault to continue on his way, while the Capital Alliance with Nissan has been falling apart since 2018 and the forced departure of Carlos Ghosn, arrested in Japan. It will also be one of the group’s sites after Luca de Meo’s departure: Can Renault remain permanent?
According to a banker close to the group, Renault is studying different possibilities to find new partners, while the remaining service provider for Nissan. The next micra occupies many technological elements of R5.
“His departure leaves Renault without a manager at a time when the group must communicate a new strategic plan and continue to unravel the alliance with Nissan,” Jefferies observes.
Luca de Meo will officially leave his position on July 15. In a preview, Renault Action is announced on Monday down, which does not attach the bounce of the group in the markets under the air of Meo. Since July 1, 2020, Renault has seen its almost duplicate course: the latter has gone from 22.6 euros against 43 euros. In March, the course even exceeded 50 euros.
“We will miss his enthusiasm. We assign the merit of having restored the ‘color’, the energy and the optimal results for Renault after years of mediocre products and financial results,” says Philippe Houchois de Jefferies, in a note published on Sunday night.
Source: BFM TV
