Gucci owner Kering watches Stock Jump after Renault CEO stops leading the luxury group

Stocks of Gucci’s owner Kering jumped Monday after the resignation boss of French automaker Renault reported that he would take over the chief executive of the struggling luxury group.

But Renault’s shares fell following the announcement that 58-year-old Luca de Meo had continued to helm the company for five years after the announcement on July 15 that he would “take new challenges outside the automotive sector.”

The Le Figaro newspaper reported that De Meo will take over Kering, a French luxury group that owns Gucci, Yves Saint Laurent, Balenciaga and other premium brands.

Kering is an Italian fashion house famous for its handbags and has struggled to turn things around with Gucci, which accounts for half of the group’s overall sales.

Previous reports say the group’s CEO François Henry Pineau will serve as the group’s chairman in management reforms.

Kering’s shares rose to 183 euros ($212) by over 6% in morning trading on the Paris Stock Exchange.

Renault’s stock fell 6.7% to 40.10 euros.

Known as a skilled communicator and marketing expert, De Meo is believed to have brought stability to the company that was in disarray when he took over in 2020.

The automaker has been upset from more than a year’s crisis in the wake of a scandal involving former head of the Nissan and Renault Alliance Carlos Gosun, who fled Japan to avoid trial.

De Meo called for a premium move to accelerate the group’s transition to electric vehicles and drive businesses out of trouble. Renault also owns the Dasia, Alpine and Ladda brands.

This story was originally introduced Fortune.com