Renault SA is confronting renewed uncertainty after the sudden resignation of CEO Luca de Meo, a leader widely credited with engineering the French automaker’s turnaround since the pandemic crisis. De Meo’s departure, effective July 15, comes at a critical moment for Renault, already navigating industry-wide headwinds, technological transitions, and an evolving partnership with Nissan.

The news, released late Sunday, sent Renault shares tumbling as much as 8% at the Paris open, reflecting investor anxiety about leadership stability and the company’s future direction. By early afternoon, shares remained down nearly 7%, while shares of Kering SA—where de Meo is set to take up a new executive role—jumped nearly 10%.

Leadership Vacuum Amidst Industry Transformation

De Meo’s exit follows the earlier resignation of CFO Thierry Piéton, who left in March for Medtronic. The double loss of senior leadership comes as Renault prepares to unveil a new strategic plan and further unwind its long-standing alliance with Nissan. Philippe Houchois, an auto analyst at Jefferies, called the departure a significant blow, writing that Renault is now “leaderless at a time when the group is due to communicate a new strategic plan and further unwind the Nissan alliance.”

The French government, Renault’s largest shareholder with a 15% stake, has signaled it will play a key role in selecting de Meo’s successor. The board aims to announce a replacement before mid-July.

The Turnaround—and the Risks Ahead

When de Meo took over in mid-2020, Renault was reeling from a record half-year loss and planning to cut 15,000 jobs. His tenure saw a major product overhaul, stronger prospects in China through engineering partnerships, and a more agile strategy in the face of the costly shift to electric vehicles and mounting competition from Chinese manufacturers.

Despite pulling out of Russia, formerly its second-biggest market, Renault has consistently outperformed Nissan, with which it agreed in March to reduce cross-shareholdings to 10% each. However, as Bloomberg reported, Nissan is now considering further stake reductions as part of a larger fundraising effort.

Bloomberg Intelligence’s Michael Dean noted that de Meo’s resignation is a “loss after he engineered a major turnaround,” warning that Renault remains vulnerable to “rising price competition, stagnant demand in Europe and a costly EV shift.”

Investor and Analyst Reaction

Equity analyst Stephen Reitman of Bernstein described the news as “unequivocally a blow to Renault,” highlighting the shock for markets and the risk to ongoing strategic reforms. Fund manager Enguerrand Artaz of La Financière de l’Echiquier called the move “clearly good news for Kering and a bad one for Renault,” emphasizing that leadership disruption could undermine strategic momentum.

Renault shares have shed significant value since the announcement, reflecting the market’s uncertainty over the automaker’s trajectory at a critical industry juncture.

What’s Next for Renault?

With de Meo’s departure set for mid-July, Renault’s board faces an urgent task to appoint a successor capable of continuing the company’s recovery, managing its transition to electric mobility, and guiding it through a period of intense industry disruption. The French government’s involvement adds another layer of complexity to the process.

The timing of the CEO change coincides with Renault’s need to finalize and communicate its new strategic plan, as well as manage its evolving relationship with Nissan and growing competition from both European and Asian automakers. The next few weeks will be crucial in determining how Renault can maintain stability, reassure investors, and preserve the momentum of its turnaround.