Latest news with #deMeo
Time of India
3 hours ago
- Automotive
- Time of India
Stellantis and Renault push for new e-car category amidst Chinese competition in Europe
With Chinese automakers pushing into Europe, Stellantis and Renault are lobbying for a new, less-regulated category of small cars with fewer safety features, making them cheaper to build. Over the last two months, Stellantis Chairman John Elkann and Renault CEO Luca de Meo have engaged in a rare public campaign to get the European Union to consider the matter. The aim is to revive a small car segment largely abandoned by Europe's automakers as such models were unprofitable, a problem they blame on regulations that make the vehicles larger, heavier and more expensive. Elkann last week said Europe needs its own version of Japan's "kei cars", small, urban vehicles with size and engine restrictions that enjoy lower tax and insurance costs - which he said could be called the "e-car". "There's no reason why if Japan has a kei car, which is 40 per cent of the market, Europe should not have an e-car," he said at an event in Turin, echoing similar comments in a joint editorial with Renault's de Meo published last month. Though de Meo is set to leave Renault in July, the company is expected to maintain its support for the proposal. "Small cars are a pocket of growth one cannot, and must not, ignore right now," said Francois Provost, Renault's director of procurement, partnerships, and public affairs. Chinese rivals have so far focused on larger EVs and hybrids in their bid for market share in Europe, but smaller EVs are on the way. The Dolphin Surf from China 's BYD hit the market one month ago, priced from under 20,000 euros ($23,124) with features such as a rotating large touch screen and anti-steam rear mirrors. By comparison, the Renault 5, which is similar though can carry one more passenger, costs almost 5,000 euros more when similarly equipped. Facing that pressure, European manufacturers are examining the potential for cheaper cars to help them boost sales and achieve their CO2 targets, said Flavien Neuvy, auto analyst and head of research firm Cetelem. "The market is down 20 per cent compared with 2019, so there is not enough volume for everyone, and the Chinese are coming," he said. Though small cars currently account for just 5 per cent of the market, they made up as much as half the market in the 1980s, and the segment could rebound with more launches, said S&P Global, which estimates sales could reach 600,000 by 2030, up about 20 per cent from last year. 'A LOT OF EXCUSES' The lobbying effort targets the EU's General Safety Regulations 2 (GSR2), which mandates safety features such as side airbags, sensors detecting whether a driver is falling asleep, lane-crossing warning, and more thorough crash tests. Such requirements and European rules on pollution add between 850 and 1,400 euros ($983-$1,607) to the cost of a car, estimates a source familiar with the lobbying. Lobbyists argue there is no need for safety requirements like those for high-speed collisions when it comes to small cars designed for city drivers. Backed by industry group the European Automobile Manufacturers Association (ACEA), they want an entirely new vehicle category called M0, or e-car. The European Commission is looking into the matter, said spokesperson Lea Zuber. Revamping requirements for smaller cars without compromising on safety will be complex and will not necessarily be implemented, said people familiar with the discussions. And whether less-regulated models could compete against Chinese EVs also remains to be seen. Matthew Avery, director of strategic development at Euro NCAP, which tests new cars for safety, said the idea that small city cars would not be involved in highway accidents is nonsense. The Chinese are bringing cars to Europe that consistently get five-star ratings from Euro NCAP, said Avery. Although its ratings do not carry legal weight, consumers take them into account and many corporate fleets will not buy cars with less than five stars. A change in regulations to cut some safety requirements could leave smaller European cars with two- or three-star ratings, Avery said. "If they want to, they can de-spec a car for safety," Avery said, but noted Euro NCAP's tests and safety ratings will remain unchanged. "Our job is just to say, well, this car is safer than that car." Emmanuel Bret, deputy head of BYD France, says the company will continue offering small cars that meet all current EU regulations and that blaming the bloc for making them unaffordable is just "a lot of excuses". "Let customers choose," Bret said.
Fashion United
4 hours ago
- Business
- Fashion United
Why Kering founder Pinault chose Luca de Meo as CEO
French luxury group Kering appointed Luca de Meo as its new chief executive officer. François-Henri Pinault stepped down after more than 20 years. Why did the Kering founder consider the Renault boss the best candidate to lead the company into a new phase of growth after the disappointing business performance of recent quarters? Long process "The group's performance over the past two years has not met our expectations, nor the immense potential of our houses," Pinault admitted during a conference call with analysts on Tuesday, April 10, 2024. The appointment of a group CEO marked the conclusion of a long process that began in early 2023. After 2022 – according to the founder, the best year in Kering's history – it became clear to him that the company had reached a phase that required a new organisational structure. Therefore, in 2023, Pinault appointed Francesca Bellettini and Jean-Marc Duplaix as deputy CEOs to make "significant changes" to the group. Duplaix assumed the new role in addition to his existing management of operations and finance. Bellettini was previously head of fashion house Yves Saint Laurent. Since then, there have been hectic times at the top of the fashion houses belonging to Kering. At Gucci, former Balenciaga creative director Demna Gvasalia followed Sabato de Sarno. Pierpaolo Piccioli took over the creative direction at Balenciaga. The top positions at the maisons were not spared either; at Gucci, Stefano Cantino was recently appointed CEO, and at Saint Laurent, former Balenciaga boss Cédric Charbit holds the top job. These are just a few of the recent management changes. Pinault considered these personnel changes and organisational measures already underway to be the absolutely necessary foundations that had to be laid before de Meo took office. De Meo would now have to deal with the measures already initiated on cost structure and refinancing in the short term in his new position. More importantly, however, de Meo needed to look to the future and think about the long-term perspective. What might Kering's profile look like in the next 10 to 15 years? This is a question Pinault hoped his new CEO would answer. De Meo was therefore expected to present a strategy for the group after taking office. Why an industry outsider? But why was this task given to a manager who could look back on a more than 30-year career in the automotive industry but had no experience in fashion? Initially, the candidate profile Pinault was looking for was not surprising in many respects. It was to be an experienced manager with in-depth knowledge of brand management and international experience; managing a global listed company was an additional criterion. Given the significant changes in the fashion industry, the candidate should have already demonstrated agility and the ability to deal with change. Most importantly, however, Pinault wants the future CEO to bring a fresh perspective to the luxury market: "The ability to bring a new vision to the sector and to our group was a key requirement." It was precisely the structural changes that went beyond the previous cyclical developments in the luxury industry that required a new way of looking at things, Pinault said. The former head of Kering seemed to be hoping for similar success from de Meo's appointment to the one he had with the group's transformation from 2010 and the repositioning of Gucci. As a newcomer to the fashion industry, he had been in a "strong position" to navigate phases of new structural change in the industry. Can Pinault let go? Pinault was also keen to stress that he was not hiring a "fireman" but someone to lead the group's "next chapter of growth". "He will have all the power and authority I had as CEO when I ran the group. So he will set his own priorities, keeping in mind the organisation of the group and the key position of the group," the Kering founder said. With de Meo taking office on September 15, the roles of chairman of the supervisory board and CEO would be separated. Both roles had previously been held by Pinault. He now wants to be "fully involved in the strategic direction of the group" as chairman of the supervisory board. Nevertheless, he vowed not to interfere in the new CEO's decisions on the business model and key personnel. However, it appears that the previous co-CEOs, Duplaix and Bellettini, could remain in their positions for the time being to help the CEO, who is new to the industry. When asked by an analyst whether the previous structure with the two could be maintained, Pinault replied: "He doesn't know the luxury industry, so we need strong support and a lot of expertise around him. And we have that within the group, starting with Jean-Marc and Francesca." Open points De Meo's salary is not yet known but will be discussed at a supervisory board meeting on July 29 before the annual general meeting voted on it on September 9. It will also be interesting to see what long-term vision de Meo will present after Pinault had already initiated many changes in the past two years – starting with the key positions at many fashion houses, such as those of former flagship Gucci. "Having the right people in the right place in the group so that when a new CEO comes in, everything works and runs," Pinault explained his approach. Until de Meo took office, there would be no slowdown in the action plans already initiated at the brands. Was still-Kering-boss Pinault really concerned with putting everything in order in the group before his successor arrived, or was it an attempt to quickly get involved himself? Given this already laid foundation, the question also remains as to what extent the new group CEO, de Meo, could still get involved. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Time of India
5 hours ago
- Automotive
- Time of India
Fearing China's small car rivals, Stellantis, Renault lobby EU for fewer rules
With Chinese automakers pushing into Europe, Stellantis and Renault are lobbying for a new, less-regulated category of small cars with fewer safety features, making them cheaper to build. Over the last two months, Stellantis Chairman John Elkann and Renault CEO Luca de Meo have engaged in a rare public campaign to get the European Union to consider the matter. The aim is to revive a small car segment largely abandoned by Europe's automakers as such models were unprofitable, a problem they blame on regulations that make the vehicles larger, heavier and more expensive. Elkann last week said Europe needs its own version of Japan's "kei cars", small, urban vehicles with size and engine restrictions that enjoy lower tax and insurance costs - which he said could be called the "e-car". "There's no reason why if Japan has a kei car, which is 40% of the market, Europe should not have an e-car," he said at an event in Turin, echoing similar comments in a joint editorial with Renault's de Meo published last month. Live Events Though de Meo is set to leave Renault in July, the company is expected to maintain its support for the proposal. "Small cars are a pocket of growth one cannot, and must not, ignore right now," said Francois Provost, Renault's director of procurement, partnerships, and public affairs. Chinese rivals have so far focused on larger EVs and hybrids in their bid for market share in Europe, but smaller EVs are on the way. The Dolphin Surf from China's BYD hit the market one month ago, priced from under 20,000 euros ($23,124) with features such as a rotating large touch screen and anti-steam rear mirrors. By comparison, the Renault 5, which is similar though can carry one more passenger, costs almost 5,000 euros more when similarly equipped. Facing that pressure, European manufacturers are examining the potential for cheaper cars to help them boost sales and achieve their CO2 targets, said Flavien Neuvy, auto analyst and head of research firm Cetelem. "The market is down 20% compared with 2019, so there is not enough volume for everyone, and the Chinese are coming," he said. Though small cars currently account for just 5% of the market, they made up as much as half the market in the 1980s, and the segment could rebound with more launches, said S&P Global, which estimates sales could reach 600,000 by 2030, up about 20% from last year. 'A LOT OF EXCUSES' The lobbying effort targets the EU's General Safety Regulations 2 (GSR2), which mandates safety features such as side airbags, sensors detecting whether a driver is falling asleep, lane-crossing warning, and more thorough crash tests. Such requirements and European rules on pollution add between 850 and 1,400 euros ($983-$1,607) to the cost of a car, estimates a source familiar with the lobbying. Lobbyists argue there is no need for safety requirements like those for high-speed collisions when it comes to small cars designed for city drivers. Backed by industry group the European Automobile Manufacturers Association (ACEA), they want an entirely new vehicle category called M0, or e-car. The European Commission is looking into the matter, said spokesperson Lea Zuber. Revamping requirements for smaller cars without compromising on safety will be complex and will not necessarily be implemented, said people familiar with the discussions. And whether less-regulated models could compete against Chinese EVs also remains to be seen. Matthew Avery, director of strategic development at Euro NCAP, which tests new cars for safety, said the idea that small city cars would not be involved in highway accidents is nonsense. The Chinese are bringing cars to Europe that consistently get five-star ratings from Euro NCAP, said Avery. Although its ratings do not carry legal weight, consumers take them into account and many corporate fleets will not buy cars with less than five stars. A change in regulations to cut some safety requirements could leave smaller European cars with two- or three-star ratings, Avery said. "If they want to, they can de-spec a car for safety," Avery said, but noted Euro NCAP's tests and safety ratings will remain unchanged. "Our job is just to say, well, this car is safer than that car." Emmanuel Bret, deputy head of BYD France, says the company will continue offering small cars that meet all current EU regulations and that blaming the bloc for making them unaffordable is just "a lot of excuses". "Let customers choose," Bret said.
Canada News.Net
11 hours ago
- Business
- Canada News.Net
Gucci slump, Valentino risks await Renault's de Meo at Kering
PARIS, France: Luxury group Kering's decision to tap Luca de Meo as its next chief is being seen as a daring but necessary attempt to halt a dramatic decline in fortunes at Gucci, the once high-flying French conglomerate. Sources said Francois-Henri Pinault, who has led the group since 2005, is expected to hand over operational reins to the current Renault CEO. The move comes after years of underperformance at Kering's flagship brand, Gucci, and ballooning debt from aggressive acquisitions. De Meo's track record in reviving Renault has impressed investors, but many acknowledge that restoring Kering's shine — especially Gucci's — will be an even more formidable challenge. "It's a bold move ... We now have a CEO (de Meo) who is a great professional," said Ariane Hayate, European equity fund manager at Edmond de Rothschild. "There's now a real willingness by Francois-Henri Pinault to take a step back after years of underperformance." Kering's shares surged more than 12 percent this week, and they are on track for their most significant daily gain since 2008. Analysts and investors say the appointment hints at deeper troubles across Kering's portfolio — beyond Gucci — and signals the company's intent to take drastic action. One large European investor said the group's problems "are bigger than perceived from the outside." De Meo is likely to accelerate Kering's cost-cutting plans, which include store closures, layoffs, and real estate sales. These plans aim to reduce its net debt of 10 billion euros (US$11.6 billion). Another pressing task will be steering the group's acquisition of the remaining 70 percent of Valentino. Kering bought 30 percent of the brand in 2023 for $1.9 billion, with an option to purchase the rest in 2028 — or potentially as soon as May 2025, depending on deal clauses. "Coming from outside the industry, de Meo's learning curve is going to be super steep, but at the negotiating table, he could do well," said one person familiar with Valentino. De Meo's biggest test, however, remains Gucci, which has faltered since designer Alessandro Michele's exit in 2022. Investor hopes were dented further with the appointment of Balenciaga's Demna as creative director. Despite his lack of luxury sector experience, de Meo joins a list of high-profile cross-industry leaders who have successfully steered fashion giants. Robert Polet, Leena Nair, Benedetto Vigna, and Sergio Marchionne all made similar jumps — and thrived.
Miami Herald
2 days ago
- Business
- Miami Herald
Gucci, Yves Saint Laurent owner throws out the fashion rulebook
Things are getting wild in the luxury industry. Quiet boardrooms are turning into war rooms. Legacy houses that coasted on prestige and heritage are now clawing for relevance. Once bulletproof brands are bleeding market share, losing cultural heat, and watching TikTok drive trends they can't keep up with. At the center of the storm? Kering. Related: Gucci, YSL owner pushes back on tariff threats The French luxury giant, home to Gucci, Yves Saint Laurent, Balenciaga, Bottega Veneta, and others, is unraveling. After riding high for years, Kering is now facing a full-blown identity crisis. Its crown jewel, Gucci, has lost momentum. Gen Z isn't buying in. Sales are slumping. Analysts are doubting. Investors are bailing. And leadership? Wobbling. In the past two years, Kering has lost more than 60% of its market value. Its debt has ballooned past $11.5 billion. Gucci (once its money-printing machine) is sputtering. And now, the company just made a move no one expected - one that has nothing to do with handbags and everything to do with horsepower. Kering confirmed on Monday that François-Henri Pinault will step down as CEO after nearly 20 years and hand over leadership to current Renault CEO Luca de Meo. De Meo, who officially leaves Renault on July 15, will take over as Kering CEO on September 15, pending shareholder approval. While best known as a "car guy" with stints leading Fiat, SEAT, Volkswagen, and most recently Renault, de Meo has a strong reputation for brand building and strategic turnarounds. Related: Why now may be the best time to buy a luxury watch He's credited with the revival of the Fiat 500 and the Renault 5, and is known for his deep understanding of marketing and design. In a statement, Pinault said, "His experience at the helm of an international listed group, his sharp understanding of brands, and his sense of a strong and respectful corporate culture convinced me that he is the leader I was looking for." The message is clear: Kering doesn't want just another luxury exec. It wants a visionary who can rewrite the playbook. It sounds wild. But is it really? Fashion, like auto, is about design, scale, and timing. And Kering needs a Its traditional playbook just isn't working. Gucci's creative shifts haven't landed. Saint Laurent is steady, but not enough to carry the weight. Balenciaga's controversy fatigue lingers. Meanwhile, rival LVMH is lapping Kering in nearly every category. Enter de Meo. He's not a fashion insider, but that might be the point. Kering doesn't need another luxury lifer - it needs someone willing to make hard decisions and rip off Band-Aids. More fashion: Dior suffers major loss as trailblazing designer exitsThe Birkin and LL Bean mashup you didn't know you neededPopular retailer flags major fashion trend that could save luxury fashion And with his outsider status, de Meo could have the freedom to cut deeper, move faster, and ask the questions insiders won't. De Meo is known for being strategic, brand-driven, and deeply interested in design - he reportedly has an affinity for Swiss watches and the luxury space. That gives him something rare: operational rigor and taste. If this shakeup works, it won't just reshape Kering. It could mark a new era of luxury leadership, where cultural relevance depends less on who you know in fashion, and more on whether you can actually build a brand people care about. For fans of Gucci, Yves Saint Laurent, and the future of fashion, this could be the plot twist that changes everything. Related: How an airplane vomit bag led to the iconic Hermès Birkin The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
