KERING, the owner of Gucci, sees the stock leap after the CEO of Renault stopped leading the luxury group

The stocks on the owner of Gucci Kering jumped on Monday due to reports that the outgoing president for the French auto manufacturer Renault will take over as CEO of the troubled luxury group.

However, Renault shares fell after their announcement on Sunday that Luka de Miu, 58, will step down on July 15 “to face new challenges outside the automotive sector” five years after the company’s head.

The Le Figaro newspaper reported that De Meo will undertake KERING tasks, the luxury French group that owns Gucci, Yves Saint Laurent, Balenciaga and other distinguished brands.

KERING to turn things in Gucci, the Italian fashion house that is famous for handbags that represent half of the total group sales.

Previous reports said that the group’s CEO Francois Henry Pinol will remain as president of the group in the administration management.

KERING shares rose by more than six percent to 183 euros (212 dollars) in the morning deals on the Paris Stock Exchange.

The shares in Renault decreased by 6.7 percent to 40.10 euros.

De Meo is known as skilled communication and marketing expert, by providing stability to a company that was disturbed when he took over in 2020.

The auto company was suffering from more than a year from the crisis in the wake of the scandal that included Carlos Ghosen, former President of the Nissan Renault alliance who fled Japan to avoid trial.

De Meo has accelerated the group’s transformation into electric cars and pushed for a sophisticated move in an attempt to direct the company out of problems. Renault also owns the brands Dacia, Alpine and Lada.

This story was originally shown on Fortune.com