PARIS (Reuters) -Renault named Francois Provost, its chief procurement officer, as CEO on Wednesday, opting for a little-known company insider to steer the French carmaker through growing competition and weak demand that triggered a profit warning earlier this month.
The appointment, effective from July 31, comes a month after former boss Luca de Meo abruptly resigned to join luxury group Kering.
“With a strong international experience in both operational and strategic roles, an in-depth understanding of the sector’s challenges, and a strategic vision, Francois Provost has the qualities required to continue and accelerate the development of Renault Group,” the French carmaker said in a statement.
Provost takes on the job at a critical time for Renault, which has fared better than many of its peers over the last year thanks to a focus on Europe that insulates it from trade turmoil caused by U.S. President Donald Trump’s tariffs.
But its reliance on Europe makes it more vulnerable to the region’s sluggish growth, and weaker-than-expected June volumes led it to cut its full-year margin forecast earlier this month and step up cost-cutting measures.
The warning, weeks after news of De Meo’s departure, rattled investors already worried about the management transition, sending shares plunging to an 18-month low, despite the company’s promise of a better second half.
(Reporting by Gilles Guillaume and Dominique Patton; Editing by Elaine Hardcastle and Richard Lough)
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