UK tobacco firm Imperial Brands has named Stefan Bomhard, the boss of car dealership Inchcape, as its new chief executive.

Bomhard is replacing Alison Cooper, whose departure was announced in October and who is stepping down with immediate effect.

Bomhard is joining Imperial from car dealership Inchcape, where he has been CEO for five years. According to media reports, he is expected to join organization in next six to 12 months.

Bomhard’s appointment came at time when the company is struggling to keep pace with rivals in the battle for share in cigarette-alternative products. Shares in the company are down 22 percent in the past year, compared with a rise of 25 percent for rival British American Tobacco, and are almost half the value of their 2016 peak. 

“The company has clearly struggled in terms of share price and the experience has been very poor,” shared one major fund manager, who added that Mr Bomhard’s experience of developing emerging markets and rolling out extra services at Inchcape would be a boon to Imperial.

Along with the announcement of Mr Bomhard’s appointment on Monday, Imperial said that Cooper would step down with immediate effect, leaving two divisional directors, Dominic Brisby and Joerg Biebernick, to act as joint interim chief executives. It added that Matthew Phillips, who had piloted the company’s new product strategy, would also be stepping down.

Image source: Financial Times