Storm at Porsche: Shareholders slam CEO’s slumping sales and dual leadership role

Porsche shareholders are demanding swift leadership changes as the sports carmaker grapples with collapsing sales in China and escalating trade tensions in the U.S.

At the center of the unrest is CEO Oliver Blume, who leads both Porsche AG and its parent company, Volkswagen Group. Investors are calling on him to relinquish one of the posts, warning that his dual role is dragging down Porsche’s performance and market valuation.

“Independent management of both groups is de facto not possible if one person manages both,” said Hendrik Schmidt, governance expert at DWS, the asset management arm of Deutsche Bank. He argued that the leadership overlap is contributing to Porsche’s discounted stock price.

Blume defended his position at the annual shareholder meeting in Stuttgart, saying, “Last year we had massive headwinds. Now we’re experiencing a violent storm.” He admitted the Chinese market had “collapsed” but assured shareholders that improvements were underway.

Mounting pressure from major markets

Porsche cut its annual forecast last month after reporting a 42% plunge in Q1 sales in China. The automaker also faces pressure from U.S. tariffs and sluggish demand for electric vehicles, worsening its outlook. These developments have rattled investors, with Porsche shares now down about 45% from their 2022 IPO highs—when the firm briefly surpassed Volkswagen’s valuation.

“Porsche is caught in a gruelling sandwich between the trouble spots of China and the USA,” said Ingo Speich, head of sustainability and corporate governance at Deka Investment. “The company must become like its products: fast and powerful, yet safe and desirable.”

No Voting Power, But Voices Getting Louder

Although ordinary investors hold non-voting preference shares, the frustration was palpable at the meeting. Porsche’s control remains firmly with Volkswagen and Porsche Automobil Holding SE, owned by the Porsche and Piëch families.

Still, the pressure is mounting. Speich openly urged Blume to “give up a position on the board at last,” echoing a growing chorus of discontent.

Blume, who has insisted that his dual mandate is “a recipe for success,” also acknowledged that the structure may not last forever.

“It’s perfectly clear to us: you expect more from Porsche. Of course. We do too,” he said.

Read more on Porsche’s Q1 profit drops 40% amid trade tensions, weak Chinese demand