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New Delhi: Following months of pressure and confusion, along with dissatisfaction from investors, Porsche have announced that CEO Oliver Blume will be replaced. The company confirmed, through the Supervisory Board, that negotiations have started for an early and mutually agreed termination of Blume’s mandate as head of Porsche AG.
Michael Leiters, former CEO of McLaren and also a former Porsche executive with a long history with the company, will be taking over. He is being seen as the perfect person to reimagine the brand from Zuffenhausen. The move is coming at a time when the brand has become very vulnerable to the market pressures, especially with poor demand from China and increasing export tariffs in the US and uncertainty with EV.
It is coming for a brand which was among being most profitable, and the recent tolls have resulted in an overhaul of $2.1 billion in EV strategy. With a projected operating margin of just two per cent from 2025, it is a warning bell. There have been questions about Blume being in leadership roles, including being the CEO of both Porsche and Volkswagen Group.
The concern is that it has shifted focus from Porsche’s strategies and decision-making ability when it needs an autonomous and focused think tank at the top.
For Michael Leiters, this won’t be the first time he comes to Porsche, having already spent 13 years at the company between 2000 and 2013, holding big positions including product development and overseeing projects like Cayenne, which didn’t just redo the brand’s image but changed the concept of SUV across the brands. It made the brand take a new trajectory for record sales and profits.
After his time at Porsche, Leiters came to Ferrari as Chief Technology Officer, where he had the big role of being the brand’s technical evolution, spearheading the development of quite a few landmark models and advanced technologies. In 2022, he became McLaren Automotive’s CEO, where he led the launch of the 750S and played an integral part in the launch of the brand’s hybrid car Artura after delays. Both these models reshaped McLaren in many ways.
What Leiters have with them is familiarity with the brand, experience of working with big brands during a crucial timeframe, as well as technical know-how. This is what Porsche needs at this point in time, and negotiations are already underway. If an agreement goes through, Leiters will take over from Blume, who will still serve as CEO of Volkswagen Group, which officially separates the two roles.
