The abrupt resignation of Stellantis CEO Carlos Tavares sent shares in the world’s No. 4 car maker to more than two-year lows on Monday as investors questioned its turnaround plans.

Tavares’ exit leaves a void at the top of the company as management scrambles to address overcapacity and bloated inventory in the US, while global car demand remains sluggish and competition from Chinese rivals intensifies.

A search had already been underway for Tavares, who had been due to step down in early 2026. UBS analyst Patrick Hummel wrote that moving forward the search for a replacement cuts the uncertainty for Stellantis by about six months.

But the “sooner the new CEO is announced, the better,” he wrote.

In the meantime attracting potential investors could prove a challenge “with such volatility in the management team”, JPMorgan analysts wrote in a research note.

Whoever takes over the top job faces a daunting task, with dealers and industry experts saying the sprawling group of 14 brands including Jeep, Fiat, Ram, Maserati and Opel has priced itself out of the market in the US and Europe alike.

The carmaker issued a major profit warning at the end of September which ultimately led to the downfall of Tavares, previously one of the most respected executives in the auto industry.

In recent weeks a difference in views had emerged among major shareholders, the board and Tavares resulting in the CEO’s resignation, Henri de Castries, a senior independent director on the Stellantis board, said in a statement.

Stellantis said it would establish a new interim executive committee led by chairman John Elkann and seek a replacement CEO in the first half of 2025.