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Analysts say that Le Vot and Stellantis' Picat could be included in Renault's search for a new CEO.

The sudden departure of Luca de Meo as CEO of Renault has sparked a search for a successor. Analysts have mentioned longtime insider Denis Le Vot, and Maxime Picat from Stellantis rival as candidates to continue the French carmaker's turnaround.

Investors worried about Renault's future with de Meo gone, pushed the shares down by up to 8%. This was the biggest percentage drop in a single day since February 2022. Kering shares, where de Meo will be CEO, rose.

Picat, the head of global procurement and supply chains for Stellantis, was in the running to be the CEO at the No.4 automaker in the world. 4 automaker. Antonio Filosa, one of two internal candidates he was competing against, won the race.

Le Vot, the executive vice president of Renault, joined Renault after graduating and is now in charge of its Dacia low-cost brand.

Analysts from French brokerage Kepler Cheuvreux believe both men are potential successors. JP Morgan analyst Jose Asumendi also noted Renault's "strong" bench of brand managers including at Dacia.

He said: "We (...) would also envision external candidates (from other companies) like Stellantis Group, VW Group and Nissan, amongst others."

Le Vot and Picat are both French citizens. They did not respond immediately to our requests for comment. Renault has declined to comment about its succession plans.

Anyone who succeeds de Meo must be ready to go.

While he revitalized Renault and restructured its strategic alliance between Nissan during his five-year tenure as CEO, it faces increasing competition from Chinese competitors. It is also smaller than other manufacturers, so it must rely on partnerships.

De Meo's exit will increase concerns over Renault's independence, according to Jefferies analysts. This is a challenge that has always existed in an industry based on scale.

Renault was the No. According to Felipe Munoz's data, the 15th largest automaker in terms of sales will be in 2024. This is down from 2023, when it was 14th.

It is expected that Changan will surpass BYD in sales.

Renault, under de Meo, teamed up with Google, Qualcomm, and China's Geely to make up for the small size of the company, as the auto industry struggles with the high cost of going electric.

Although the partnerships have reduced costs, labour unions say they are a threat to in-house knowledge.

INSIDER VS OUTSIDER

Dacia has been a success under Le Vot, thanks to the Sandero and Duster.

The subcompact Sandero, behind the Renault Clio, was Europe's number 2 selling car in April. According to research firm JATO Dynamics, the subcompact Sandero was Europe's No. According to research firm JATO Dynamics, the Duster SUV was ranked No. 7.

Le Vot has held previous management positions in Turkey and Russia where he served as chief operating officer between 2011 and 2013, and he ran North American operations for alliance partner Nissan where he managed the launch of the Altima sedan in 2018

Picat spent all his career with PSA, and then Stellantis when the French group merged FCA in 2021.

He headed the Peugeot brand in 2012 and oversaw two of the SUVs' bestsellers: the 2008 model and the 3008 model.

A Stellantis insider who is familiar with Picat told us that while he did not know whether Picat was interested in a top position at Renault, he "wouldn't be surprised" to hear him speak with the French automaker.

Source, who spoke under condition of anonymity as he wasn't authorised to speak publicly about the matter, said that it was normal for a CEO to consider other options after losing the race.

(source: Reuters)