Porsche is set to welcome former McLaren chief executive Michael Leiters as a potential successor to current CEO Oliver Blume, who is facing increasing pressure due to his dual leadership role at both Porsche and its parent company, Volkswagen Group. The announcement comes as Porsche initiates discussions with Blume regarding the early termination of his contract following reports of dissatisfaction surrounding his performance.
Leiters, who departed from McLaren in April after holding the position for just over a year, brings extensive experience to the table, having spent over a decade at Porsche prior to his time in the British automotive sector. Despite Blume retaining his position as CEO of Volkswagen, the urgent need for change at Porsche has become evident as the brand grapples with multiple challenges.
In recent months, Porsche has had to lower its profit forecasts as it reassesses its electric vehicle (EV) strategy amidst declining sales, particularly in China. The company recently disclosed a significant €1.8 billion charge linked to the development of a new electric SUV, which has been shelved in favor of advancing petrol and hybrid models. Blume’s tenure, marked by achievements such as leading the company through its initial public offering in 2022, has been clouded by a decline in stock value, which has fallen to approximately a third of its peak.
Criticism of Blume’s split focus between Porsche and Volkswagen has mounted, with key industry figures expressing concerns about his effectiveness as a “part-time boss.” Daniela Cavallo, head of Volkswagen’s works council, has publicly urged for Blume to abandon this dual role, highlighting the strain it places on leadership and performance across both companies.
Ingo Speich from Deka Investment emphasized the necessity of restructuring at Volkswagen, suggesting that the decision to separate the roles of CEO was overdue, and more proactive measures are now essential.
Leiters could provide a much-needed fresh perspective, given his background in engineering and previous experience at Porsche, where he rose to become product line manager. Analysts recognize that while new leadership may bring hope for addressing ongoing issues, including the need for advancement in the e-mobility sector and bolstering sales performance in China, substantial challenges remain ahead.
As Porsche initiates this transition, the automotive landscape will be watching closely to see how the leadership change impacts the company’s future strategies and performance.
