By Rachel More
BERLIN (Reuters) -Porsche lined up former McLaren boss Michael Leiters as likely successor to Oliver Blume as CEO of the sports car maker on Friday, after investors criticised his dual role.
Blume, who took the wheel at Porsche a decade ago, has for the past three years also been CEO of its parent Volkswagen, a situation unpopular among some shareholders.
“Negotiations with Dr. Leiters will be initiated,” Porsche said in a statement, adding that leading supervisory board members had authorised talks with Blume on ending his tenure.
CHANGE ‘HAS COME FAR TOO LATE’
Hiring a new CEO is a bid by Porsche to revive its fortunes as it tackles global tariffs, falling Chinese demand and a costly reversal back to combustion engines after customers shunned electric.
Only three years ago, Porsche’s market value was the second highest in German history and the carmaker was Europe’s most valuable, worth 83 billion euros ($97 billion).
Porsche’s share price has since fallen by more than half and it tumbled out of the blue-chip DAX index last month. Meanwhile, Volkswagen’s share price is down more than a third.
“This step has come far too late and a lot of time has been wasted,” said Ingo Speich of German mutual fund firm Deka Investment, which holds about $48 million of Porsche stock.
“Blume must win back the trust of the capital market. He must push ahead with the restructuring and deliver on the announced models and targets,” Speich added.
Porsche shares were up 1.2% after the company named Leiters as Blume’s potential successor. Shares in Volkswagen, which did not respond to requests for comment, were up 1.3%.
Leiters, a well-known figure in the sports car world after holding executive roles at McLaren, Porsche and Ferrari, could be appointed as Porsche CEO as early as Friday and start in 2026, German magazine WirtschaftsWoche reported.
He led McLaren until April, stepping down after the company’s merger with EV start-up Forseven.
Previously, Leiters was chief technology officer for Italian luxury carmaker Ferrari between 2014 and 2019, and before that at Porsche, where he was instrumental in developing the successful Cayenne model during a 13-year stint as SUV director.
“His background appears well aligned with Porsche’s sports car and SUV DNA,” said Metzler analyst Pal Skirta.
PORSCHE, VOLKSWAGEN STRUGGLE IN CHINA
Porsche has struggled particularly in China and Blume recently announced a costly strategy reversal away from EVs to the combustion engine models that made it famous.
Blume is considered close with the Porsche/Piech dynasty that controls Volkswagen via the Porsche SE holding company.
Porsche’s sales in China have slumped by nearly a third since hitting a record of 95,671 in 2021.
Its China sales were down 26% in the first three quarters of this year from the same period in 2024 and accounted for just 15% of its total, as consumers rejected Porsche’s electric vehicles in favour of Chinese futuristic sporty alternatives.
Volkswagen has also suffered in China, where its sales fell to 2.8 million cars in 2024, from nearly 3.7 million in 2020.
For years, Volkswagen was China’s No. 1 automaker, but was overtaken by BYD in 2024. At its current rate of growth, China’s Geely appears set to knock Volkswagen into third place in 2025.
($1 = 0.8554 euros)
(Additional reporting by Ilona Wissenbach; Writing by Friederike Heine and Matthias Williams; Editing by Mark Potter, Elaine Hardcastle and Alexander Smith)
