Renault appoints Luca De Meo as its new CEO

Renault has appointed Luca de Meo as its new CEO, who will take charge from July 1.The post was vacant after Renault’s ex-head Carlos Ghosn was arrested, that was temporarily filled by CFO Clotilde Delbos as the interim CEO.

Renault's current strategic plan is entitled 'Drive the Future'. Reviving the moribund alliance with Nissan Motor is essential. First, however, he must deal with worsening profitability at home.  Urbane chairman Jean-Dominique Senard has wasted little time since dumping ex-Renault CEO Thierry Bollore, seen as an acolyte of disgraced former honcho Carlos Ghosn, last October.

Declining sales and rising compliance costs prompted a full-year profit waning three months ago.

Those pressures aren't likely to ease soon. Analysts at Fitch see no growth in auto sales in Europe, which accounts for roughly half of Renault's revenue, over the next two years. At the same time, stringent new EU carbon-emission rules will keep upwards pressure on compliance costs. Little wonder Renault shares have cratered by 35% since mid-October, compared with a rise in the Thomson Reuters Global Automobiles & Auto Parts index.

Renault is betting a new CEO can help clear the air with Nissan, which recently replaced its own chief executive. Makoto Uchida has said the Japanese carmaker wants to “move forward with our relationship with Renault, while preserving our independence.”