Porsche is looking to hire ex-McLaren CEO Michael Leiters as its new CEO to improve the company's performance and end the dual role held by Oliver Blume, who has been running both Porsche and its parent company Volkswagen. Under Blume's leadership, both companies have faced challenges, including global tariffs and decreased demand in China. Porsche's market value and profit margins have fallen, and it recently dropped out of the DAX index.
DWS, a Porsche shareholder, views the potential change in leadership as a positive sign, stating that it reflects the market's concerns being acknowledged. However, the company still needs to tackle significant challenges, particularly in electric mobility and the declining sales situation in China. Following the news of Leiters' potential appointment, Porsche shares rose by 1.2%, while Volkswagen shares increased by 1.7%.
Leiters has an impressive background in the car industry, including roles at McLaren and Ferrari, and has been recognized for developing the successful Cayenne model at Porsche. Reports suggest that he could be appointed as early as this Friday, with a start date set for 2026.
Porsche's troubles are part of a broader issue in Germany's automotive sector, which has been grappling with high costs and stiff international competition. The company's sales in China have significantly declined, with a 26% decrease in the first three quarters of 2023 compared to the same timeframe in 2022. Volkswagen, once the leading automaker in China, has also seen its sales drop.
Industry experts express concern that the structural shifts at Porsche are overdue, emphasizing the need for Blume to restore investor confidence and push forward with necessary changes. Blume himself has acknowledged the demanding nature of managing both Porsche and Volkswagen, indicating he works around 70 hours a week.