Porsche picks ex-McLaren boss to drive its comeback amid tough market

Porsche has chosen former McLaren chief Michael Leiters as its new CEO, hoping to steer the luxury automaker back to growth after years of falling profits and investor unease.

Leiters, 53, will take over on January 1, 2026, replacing Oliver Blume, who will now focus fully on leading Volkswagen. The move ends Blume’s controversial dual role, which some investors said hurt Porsche’s focus and performance.

“Michael Leiters knows how to build fast cars and strong teams,” Blume said in a statement. “He brings deep experience in performance engineering and luxury car design.”

Porsche’s struggles deepen

Once Europe’s most valuable automaker with a market value of €83 billion ($97 billion) in 2022, Porsche’s worth has now dropped by more than 50%, knocking it out of Germany’s DAX blue-chip index last month. Profit margins have narrowed, and sales in China, its biggest market, have plunged 26% in the first three quarters of 2025 compared to last year.

The carmaker has been hit by rising global tariffs, high manufacturing costs, and a sluggish switch to electric vehicles (EVs). In a recent shift, Blume reversed Porsche’s earlier all-electric strategy, pledging a return to powerful combustion-engine models that built the brand’s fame.

A leader built for speed

Leiters’ resume fits Porsche’s DNA. Before leading McLaren, he spent five years as Ferrari’s chief technology officer and 13 years at Porsche, where he helped launch the Cayenne SUV, one of its most profitable vehicles. Porsche’s stock rose 1.6% on the news, while Volkswagen shares climbed 1.7% after extending Blume’s CEO contract to 2030.

Investors cautiously optimistic

Some investors say the leadership change signals that Porsche is finally listening. “It shows that repeated criticism has been heard,” said Hendrik Schmidt, head of stewardship at DWS, which holds about $34 million in Porsche shares. “But the challenges remain, Porsche must prove it can compete in e-mobility and rebuild sales in China.”

Volkswagen has also been losing ground in China. Its sales dropped from 3.7 million cars in 2020 to 2.8 million in 2024, overtaken by local rival BYD. Analysts warn that Geely could soon push it further down the rankings.

Deka Investment’s Ingo Speich, whose firm holds $48 million in Porsche stock, said, “This change came too late. Blume must regain market trust and deliver on promised new models.”

Porsche hopes Leiters can help it accelerate again, balancing its heritage of speed and design with the world’s race toward cleaner cars.

Read more on Blume to quit Porsche CEO role amid investor pressure, shares fall 45% since IPO