TrueCar CEO Scott Painter Will Step Down
TrueCar CEO Scott Painter will leave the company at the end of this year, Automotive News is reporting.
Painter announced he was leaving the company after TrueCar announced it had lost $14.7 million in the second quarter on $65.3 million revenue.
“After a decade of building TrueCar from an idea into a public company, I have come to the conclusion reached by many founders and entrepreneurs in my position: It is time for a change.” Painter said in a statement according to Automotive News.
Painter will remain on the company’s board of directors.
It’s been a tough year for Painter and TrueCar.
In July, AutoNation announced it would sever ties with the online auto-buying tool. Representatives from AutoNation said TrueCar wanted sales data from all its car sales — not just the ones directly attributable to TrueCar. TrueCar representatives said the company asked AutoNation for fees that it was charging other dealerships for its service.
Also, a lawsuit brought by 100 dealers this month alleged that TrueCar engaged in deceptive business practices by not disclosing that it was charging dealers $299 to $399 for each car sold, a cost that would presumably be passed along to customers.
A replacement for Painter has not yet been announced.