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The head of Renault’s budget brand Dacia, Denis Le Vot, is a frontrunner to become chief executive at the French carmaker, following the shock announcement of Luca de Meo’s exit for luxury group Kering.
Renault hopes to avoid the type of lengthy CEO search that took place at rival Stellantis as the industry faces the challenge of transitioning to electric vehicles and the rise of Chinese competitors in Europe, according to several people with the knowledge of the discussions.
The process is at an early phase, with the board discussing both internal and external candidates to succeed de Meo.
The names under consideration include Maxime Picat, chief operating officer at Stellantis, who was one of the CEO candidates to replace Carlos Tavares, the people said.
Employees at the French carmaker also said Philippe Krief, who de Meo poached from Ferrari for Renault’s chief technology officer post, was another potential contender. Some analysts, such as Bernstein’s Stephen Reitman, are also calling on the board to consider Thierry Piéton, the former finance chief who joined medical device maker Medtronic in March.
Renault declined to comment. Le Vot, Picat, Krief and Piéton did not immediately respond to requests for comment.
Two people close to Renault said de Meo had presented his next strategic plan to a board committee on Thursday, shortly before he handed his resignation to board chair Jean-Dominique Senard. The carmaker said he would depart in mid-July.
Renault employees received two emails on Monday morning: one from de Meo, thanking staff for their efforts under his leadership, and a second from Senard assuring them that the company’s “succession plan” was in place, two employees said.
Le Vot is well regarded internally and an early favourite to take on the role. In addition to turning Dacia into one of the French group’s most successful brands, Le Vot, who is also the supply chain officer for the whole group, has been trusted by de Meo to deal with some of the carmaker’s most challenging dossiers over several years.
He had a senior role in the alliance with Japanese partner Nissan in 2019-20 and oversaw Renault’s exit from Russia after Moscow’s full-scale invasion of Ukraine and the sale of its almost 69 per cent stake in Russian carmaker Avtovaz, according to two people familiar with the situation.
Le Vot would be the “continuity candidate”, said one person familiar with the company. “He’s spent all his working life at Renault and Nissan and he’s the closest to Luca in terms of profile: a commercial guy who’s a great communicator and manager.”
The next chief executive of Renault will also have to satisfy the French state, now the carmaker’s largest shareholder with a 15 per cent stake after Nissan reduced its holding in its partner.
The government has a record of taking its time over appointments in some companies where it owns a holding, with ongoing succession processes dragging on at French rail operator SNCF and postal service La Poste.
Senard, a former Michelin CEO, is well respected by the state, including for steering Renault after the crisis linked to former chief executive Carlos Ghosn, who was arrested in Japan in 2018 where he denied claims of financial misconduct.
Senard met France’s economy minister Eric Lombard on Sunday afternoon to discuss de Meo’s departure, a government official said, adding that the state would work closely with the group’s chair on the chief executive search.
The announcement of de Meo’s exit shocked both employees and investors, with Renault’s share price falling 8 per cent on Monday. De Meo is one of the most respected CEOs in the automotive industry, having revived Renault from a struggling lossmaking group into one with a record profit margin and strong new products.
But some analysts say de Meo leaves a group that remains vulnerable to increased competition due to its relatively small size. The announcement also comes as he was due to present Renault’s latest growth strategy to investors.
“I don’t think [de Meo] was daunted by the challenge of the second phase of the plan,” said Bernstein’s Reitman. “The challenge is the one that the entire legacy automakers face — proving their relevance as the Chinese manufacturers look more and more beyond their own shores.”
Renault has already been unwinding its 26-year-old capital alliance with Nissan and has partnered with China’s Geely on a combustion-engine business as well as building and marketing hybrids and electric vehicles in Brazil and South Korea.
Philippe Houchois, analyst at Jefferies, said de Meo’s departure “will add to concerns about Renault’s ability to be independent, the growing influence of Geely as minority investor and renewed interference from the French state”.
That plan would have involved deeper collaboration with Geely, helping Renault move into adjacent technologies such as the development of EV chargers. Under de Meo, the company has also started using more engineering expertise and components from China to bring down the cost of its vehicles as well as to speed up their development cycle.
“He’s very good at choosing the right moment to leave,” said one person familiar with the company. “If his plans succeed, it’s because he had the idea, if they fail it’s because his successor won’t have been able to execute them.”
