Renault’s incoming CEO Luca de Meo is ready for turnaroud challenge

Renault’s incoming Chief Executive Luca de Meo stated on Friday that he was confident that the French carmaker, which has just launched major cost cuts, could come up with a positive result for investors after a period of declining sales and margins.

The former Volkswagen executive is set to take up the job on July 1, in the middle of upheaval for the automaker as it grapples with the coronavirus pandemic and reverses years of production expansion to concentrate on its most profitable models.

Addressing shareholders at a yearly meeting, De Meo stated he shared a “sense of urgency” with teams at Renault to deliver on its reorganizing.

“I’ve always liked to go where there are challenges,” De Meo stated, adding he was well aware that Renault faced problems.

“I know that with everyone’s help, we can make Renault among the best turnaround surprises in your investment portfolio.”

The coronavirus crisis has forced automakers across the world to temporarily stop manufacturing, while dealerships also closed, compounded present problems at Renault, which is also attempting to relaunch an alliance with Japan’s Nissan Motor.

De Meo is expected to declare a new strategic plan by the end of the year or early next year. The plan would include models of Renault where it wants to focus on.

The incoming executive had to delay his arrival at the automaker because of a non-compete clause in his former contract. He will work together with the current interim CEO Clotilde Delbos and Chairman Jean-Dominique Senard.

De Meo recently asked staff to prepare him with memos about the group’s brands and their performance, people at Renault stated, adding he had taken interest and been complimentary about its Alpine sports car ranges for a name.

Several factories in France are going through a review, including the one that makes Alpine vehicles in Dieppe.