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Prepared For A Turnaround Challenge For Renault, Says Incumbent CEO


06/20/2020


Prepared For A Turnaround Challenge For Renault, Says Incumbent CEO
The global slump in demand for cars which existed for the last few years and which was accentuated by the novel coronavirus pandemic has pushed the French car maker Renault to take on major steps to reduce costs and a change in its leadership.
 
Luca de Meo, the incoming chief executive of the company said that he company, which has been ailing in terms of revenues and profitability, would be able to deliver a positive surprise for its investors soon and rebound from a period of the declining sales and profit margins.
 
De Meo is a former executive of rival car maker Volkswagen and is set to join the new position from July 1 amid an upheaval of for the company because of the novel coronavirus pandemic and a strategy to cut down on production expansion, a long standing strategy of the company, and focus on the production of the most profitable models of the company.
 
He shared a "sense of urgency" with teams at Renault to deliver on its restructuring, said de Meo while addressing shareholders at an annual meeting.
 
"I've always liked to go where there are challenges," De Meo said. The fact that Renault was facing problems was very clear to him as well, he added.
 
"I know that with everyone's help, we can make Renault one of the best turnaround surprises in your investment portfolio," he said.
 
Auto companies all around the world have been forced to halt production because of the coronavirus pandemic crisis while dealerships have also been forced to down shutters, which has added on to the existing problems for Renault, even as the French car maker attempts to the restore its relationships with the Japanese auto giant Renault in its alliance with the Japanese company, which also includes the Japanese auto company Mitsubishi. 
 
Analysts are expecting that the new strategic plan for the company will be announced by de Meo by the end of the current year or early next year. Analysts expect the strategic plan to include a vision for the models that the company wants to focus on.
 
A non-compete clause in his former contract has delayed the arrivals of the Italian-born executive at Renault. After joining, de Meo will be working alongside the current interim CEO Clotilde Delbos and Chairman Jean-Dominique Senard.
 
Reports said that in recent days, de Meo has asked Renault executives to provide him detailed information about the group's brands and their performance. Sources quoted in the reports said that de Meo has been expressing interest I the affairs of the company, for example he has complemented the Alpine sports car ranges of the company.
 
The company is however also conducting review of operations at a number of its factories in France which includes one that makes Alpine vehicles in Dieppe.
 
(Source:www.economictimes.com)