Carlos Tavares abruptly stepped down from his position as CEO of Stellantis on Sunday after facing scathing criticism of how he handled the company. Meanwhile, Stellantis shares go southward.

After layoffs at several of its plants and major blunders in his handling of company brands such as Jeep, Dodge, Chrysler, Peugeot, Ram, among others, Tavares handed in his notice to the board of directors, with “immediate effect,” according to a press release from Stellantis.

Since the news hit this morning, Stellantis shares have dropped by as much as 8.9%, Reuters reports.

Previously regarded as one of the most respected execs in the business, Tavares is now seen to have made one mistake too many, particularly in his handling of the company’s key North American market. While hitting a stride in 2023, Tavares came under harsh review earlier this year after the automaker issued a profit warning on its 2024 result, which included a forecast for spending up to €10 billion ($10.5 billion). The company’s shares have lost 40% of their profit this year.

“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO,” Setllantis senior independent director Henri de Castries said in a statement. “However, in recent weeks different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”

Stellantis said that it aimed to find a new leader in the first half of next year and that the process will be managed by a special committee of the board. Tavares, 62, was originally expected to retire at the end of his contract in early 2026.

One of Tavares’s missteps in the US involves bloating inventories of Jeep, Chrysler, Ram, and Dodge vehicles sitting in factories or dealer parking lots, which sparked scathing criticisms from dealers. Vehicle deliveries fell by 18% in North America in the first half of the year, with market share dropping from 10% to 8.2%, according to Reuters. Also, Stellantis was slow to lower vehicle prices in the face of tough competition from GM and Ford, with analysts saying vehicle prices were too high for core customers of those brands, CNN reports.

Plus, the United Auto Workers Union targeted Tavares after the company laid off about 1,200 workers at its Ram truck plant in Warren, Michigan, and announced plans to cut shifts from its Toledo plant, which builds the Jeep Gladiator pickup and resulted in the loss of about 1,100 jobs.

In Europe, Stellantis brands Peugeot and Fiat have fumbled as well in the face of stiff competition from China’s BYD, MG Motors, and Geely, while simultaneously losing massive ground in China, the world’s biggest auto market.

Global sales volume for the first half of this year fell 10%, and in the third quarter it dipped 20%, with US sales down 17% in the first nine months of the year. In 2023, profits were strong enough to encourage Stellantis to write Tavares a paycheck of €36.5 million, or about $38.4 million in total compensation – earning him the title of the world’s highest-paid automotive CEO.

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