Porsche faces profit challenges and leadership debates, with Michael Leiters as CEO successor.
On Monday, Porsche’s shares slumped over seven per cent after the company cut its profit margin guidance on Friday, citing weaker demand, intense price wars in the key Chinese market, and higher U.S. tariffs. Porsche now expects its 2025 profit margin to be no more than two per cent, a substantial cut from its previously guided range of five to seven per cent.
The Dual Leadership Dilemma and Product Realignment
The core of the recent controversy lies with CEO Oliver Blume, who has led Porsche for 10 years but has also served as CEO of parent company Volkswagen for the past three years. Shareholders and unions have criticized this dual leadership role, arguing that both companies are undergoing restructuring that requires a CEO’s undivided attention.
The company’s financial woes stem directly from a strategic product overhaul, which involves delaying some all-electric vehicle (EV) models in favor of hybrids and combustion engine cars. This necessary realignment will slash Porsche’s operating profit by up to 1.8 billion euros this year. Parent firm Volkswagen, which owns 75.4% of Porsche, warned it would take a 5.1 billion euro hit from the product shift, resulting in its own share price sliding 7.5%. Analysts at Jefferies warned that the revision—the third so far this year—could bring near-term product cycle and brand challenges.
Michael Leiters: A Hybrid Specialist Returns
Amid this instability, Porsche has named Michael Leiters, the former Chief Executive of McLaren Automotive, as successor to Oliver Blume. This move would end Blume’s dual leadership role.
Leiters, who is German and holds a doctorate in engineering, is a figure well-versed in the luxury hybrid segment:
- Porsche Experience: He previously worked for Porsche between 2000 and 2013, holding roles including project manager for the Cayenne hybrid.
- Ferrari CTO: Leiters served as Chief Technology Officer for Ferrari between 2014 and 2019, where he was instrumental in the development of Ferrari’s first two hybrid electric models: the SF90 Stradale and the 296 GTB.
- McLaren CEO: He was head of McLaren Automotive for nearly three years, between July 2022 and April 2025, during which time the company launched four models, including the 750S, potentially its last solely internal combustion engine model.
Analysts at Bernstein noted that billions of euros in EV investment “had not resulted in a credible challenger to top players like Tesla”. Leiters’s experience in balancing tradition with electrification is seen as vital for the company’s path forward. The new strategy, while costly in the short-term, targets a medium-term operating return on sales of 10% to 15%.
