Luca de Meo: Automotive veteran to revitalise Kering

The top position at luxury group Kering is highly sought after. It is also currently in the spotlight of the fashion industry like no other. From next week, Luca de Meo will hold this role. A look at his CV reveals that the former automotive CEO not only has a knack for brands, but also a penchant for creative ideas and stylish suits.

Passion as a profession

Born in Milan in 1967, de Meo has often said he was obsessed with cars as a child. He has roots in the southern Italian region of Apulia. Studying at the renowned Bocconi University in Milan opened many doors for the young man "without many opportunities", he said in a podcast published in May by his alma mater.

After completing his thesis on business ethics, the business administration student turned his passion into a job. He began his more than 30-year career in the automotive industry in 1992, in the marketing department of the French car manufacturer Renault.

The energetic manager did not stay there long. His next stop took him to the Japanese car company Toyota as a product and planning manager. He then moved to the car manufacturer Fiat Chrysler, where he managed the Fiat, Lancia and Alfa Romeo brands and became chief marketing officer of the Fiat Group.

Over the years, his image as a brand expert grew. With each job change, he climbed further up the career ladder. From 2009 to 2012, he worked as chief marketing officer at the German Volkswagen Group and for Audi. From 2015, he served as CEO at Seat in Barcelona.

Successful changes

His career changes seem to be related to his fondness for change and the opportunities they bring. "I've always tried that and it's something I highly recommend: Change offers you the right conditions to keep moving up," the former Renault CEO said in a conversation with influencer Romain Lanéry. This was published as a video five years ago on Renault's official YouTube channel.

The circle closed for the ambitious manager when he returned to his very first employer, Renault. From July 2020, he became head of the car company with an annual turnover of 55 billion euros and a production of 3.75 million vehicles per year. However, it also made a loss of 141 million euros.

It was a difficult time. The group had been in crisis for a while, not just in business terms. His predecessor's predecessor, Carlos Ghosn, had fled from Japan to Lebanon the previous year in a dramatic escape after being released from custody on bail. Japanese authorities had arrested Ghosn on charges of embezzlement and other offences, which he still denies today.

Brand saviour

After joining Renault, de Meo began cutting costs and launching new car models. He also recognised the signs of the times and designed a strategy for electric vehicles, which included the founding of his own company, Ampere. During his tenure, Renault returned to profitability and the share price doubled.

In addition to the successful relaunch of the Fiat 500 and the Cupra model at Seat, the latest chapter at the French car company solidified de Meo's reputation. His reputation for rescuing and launching brands now seems to resonate far beyond the automotive industry.

"He has demonstrated his ability to lead major transformations in the companies he has led," said current Kering CEO Francois-Henri Pinault during an analyst conference following the appointment of the future CEO. He also appreciates the manager's willingness to innovate, which he believes is an excellent fit for the tasks at Kering.

"De Meo has a 360-degree strategy that encompasses customer understanding, marketing, branding, supply chain finance and technology," Pinault enthused during the call.

Highly paid

The struggling luxury group Kering has put a high price tag on this expertise. The new CEO, de Meo, is to receive a bonus of 20 million euros upon joining – 15 million cash and five million euros in Kering shares. These are to compensate him for the long-term variable remuneration components in the form of shares at Renault.

His annual fixed salary is 2.2 million euros gross. In addition, there is a variable remuneration, which in 2026 should amount to 4.84 million euros if targets are met, and can even rise to 6.6 million euros if they are exceeded. The targets that de Meo must meet will not be set until the first quarter of next year. First, Kering shareholders still have to approve the remuneration and bonus on Tuesday, as well as confirm the new CEO.

From 15 September, the 58-year-old Milanese will have to prove whether his track record of transforming car brands can be transferred to the fashion industry. The French luxury group is in crisis; revenues and profits continued to decline in the past six months. This is due to the problems of its former driving force, Gucci.

After the boom years, in which former creative director Alessandro Michele set one trend after another, the brand's appeal faded. Its turnover fell from four to three billion euros in the past six months. Revenues at other group brands such as Yves Saint Laurent have also declined recently.

A new vision for luxury fashion

Kering's problems are not just homemade. After years of growth and in view of subdued consumer sentiment, the luxury industry is in a phase of self-discovery. In this situation, Kering Chairman Francois-Henri Pinault hopes that de Meo will not only focus on cost-cutting and debt reduction. These are only short-term measures. Rather, he hopes the automotive veteran will provide a vision for the future of the luxury group and the fashion industry, Pinault said at the telephone conference in June. What could Kering's profile look like in the next 10 to 15 years? "Looking beyond the boundaries of the industry was not only important for the group, but also for the current situation of this industry," Pinault said of the choice of de Meo.

De Meo has never shied away from big visions. At Renault, he has presented plans with big names like "Renaulution" or "Futurama" in recent years. Before the European elections last year, as then president of the European automotive lobby ACEA, he wrote a letter to Europe with a plea for a sustainable and competitive automotive industry, translated into 12 languages.

Industry newcomer as CEO

Although the choice of an automotive manager initially seems unusual, it is not the first time that a luxury fashion house has opted for an external executive. Four years ago, Chanel chose Leena Nair as CEO. She had previously worked for almost 30 years at the consumer goods group Unilever, with a range of products ranging from Cornetto ice cream to Pepsodent toothpaste. Pietro Beccari, current CEO of luxury brand Louis Vuitton, also began his career at consumer goods companies such as Benckiser and Henkel.

In the automotive industry, de Meo was always considered a bit more colourful than the grey technocrats. He was known there not only for his sensitivity to brands, but also for more unusual presentations at industry events, according to trade media. He is said to have a penchant for stylish suits and, according to various newspaper reports, de Meo has been open to a position in the luxury industry for some time. Perhaps, in addition to his passion for cars, his heart has always been secretly beating for fashion?

Complex task

More details about his plans for Kering and his visions for the fashion industry should become known in the coming months. According to a Kering presentation, he is to present an organisational structure and how key roles will be filled soon after taking office. Followed by a long-term strategic plan in the course of next year.

Renault's share price has not yet recovered from its low point since de Meo's departure became known on 16 June. Kering's shares have risen by more than a third since then, despite mixed half-year figures. As is well known, stock markets reflect future values. And in the case of Kering, the securities – like the future CEO – seem confident that he can solve complex tasks.

"The more complicated the problems are to solve, the more fun I have," de Meo said on Renault's YouTube channel. "The more I can learn things I don't already know, the more fun it is."

This article was translated to English using an AI tool.

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