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Economy

Renault CEO faces parliamentary scrutiny over compensation amid French industrial challenges

Friday 07 February 2025 - 11:50

In a tense session at the French National Assembly, Renault CEO Luca de Meo defended his 5.5 million euro compensation package while addressing concerns about the future of the company's former subsidiary, Fonderie de Bretagne. The hearing highlighted the stark contrast between executive pay and worker uncertainty, sparking heated exchanges with legislators.

Green Party deputy Benjamin Lucas challenged de Meo by comparing his earnings to those of 260 minimum wage workers, prompting the CEO to justify his compensation by citing the company's financial achievements. Under his tenure, Renault has tripled its market capitalization and generated 10 billion euros in cash flow.

Defending his position, de Meo emphasized his personal commitment, describing 60-80 hour work weeks and sleepless nights spent addressing company challenges. He highlighted the creation of 8,000 new jobs in France during his leadership as evidence of the company's positive impact on national employment.

The hearing also revealed Renault's ambitious plans for French manufacturing. De Meo announced targets to double current production volumes to 800,000 vehicles by 2028-2030. The company has committed to purchasing 5 billion euros worth of components from French suppliers and will manufacture the new Renault 5 model domestically rather than abroad.

However, concerns persist regarding the Fonderie de Bretagne, which Renault sold to a German fund in 2022. With no viable buyer in sight, the facility's 300 employees face an uncertain future. De Meo assured that if no solution emerges, affected workers would be offered equivalent positions at other French Renault locations, though this commitment has not fully alleviated workforce anxieties.

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