McLaren’s Former Boss Takes Over Porsche as CEO Steps Down Amid Crisis

Porsche has announced Oliver Blume's departure from his role as CEO, though he will remain as the CEO of the Volkswagen Group. Now, a new man will step in to lead Porsche: Michael Leiters, a previous Porsche employee and ex-CEO of McLaren, is being tipped to succeed Blume. After Herbert Diess' 2022 resignation, Blume stepped in to fill the role of Porsche CEO while simultaneously serving as CEO of the Volkswagen Group.

Porsche CEO Shuffle Ends A Conflicted Period At VW

With Blume out as Porsche's CEO, a period of conflict within the Volkswagen Group (VAG) will come to a close. The brand received much criticism over Blume's dual role as VAG and Porsche CEO, while Blume himself argued the role was actually to both brands' advantage.

In fairness, Blume did lead Porsche to further success. Coming in at a high point in 2015, Blume continued Porsche's winning streak by more than doubling its net profit margins. He also took the company public, raising nearly $11 billion during the company's initial public offering (IPO).

Others said Blume's dual role would prove to be too much, citicng concerns over an "overly challenging workload." Hendrik Schmidt of the DWS asset management company described the dual role as that of a "part-time CEO," per DW.

What Comes Next For Porsche?

Leiters, if appointed CEO, will face down a challenging new era for the brand. After more than half a decade of pouring money into EVs, Porsche is now seemingly just as hesitant as other automakers, adopting hybrid models and scaling back plans for full-on EVs as the climate around electric cars shifts. Porsche is reportedly reconsidering gasoline engines for the upcoming Cayman and Boxster sports cars, which were initially axed in favor of fully electric replacements. The brand's EV investments have largely fallen flat, and with the expiration of federal tax incentives in the US, one of Porsche's largest EV markets is now in doubt.

Meanwhile, Volkswagen as a whole faces serious economic uncertainty. VW is simply not competitive on the European EV market, where Chinese alternatives beat out VW on price and performance. It's an issue that plagues German automakers as a whole, and the automaker has threatened layoffs and plant closures as the brand's cost crisis escalates.