Amid a historic crisis in Germany’s auto industry, Porsche has a new chief executive.
Michael Leiters took the helm of the luxury carmaker on January 1, ending Oliver Blume’s contentious dual leadership as head of Porsche and parent Volkswagen Group, which Blume will continue to run.
The appointment comes as the Stuttgart-based manufacturer grapples with a 10% drop in deliveries for 2025, its worst performance since the 2009 financial crisis. Pressured by supply constraints and weakening demand for popular combustion models, Porsche delivered just 279,449 vehicles last year.
Once the crown jewel of European manufacturing, the sports carmaker has seen shrinking margins and a plummeting share price, culminating last September in Porsche’s removal from Germany’s blue-chip DAX index.
The sales decline was sharpest in China, where deliveries dropped 26% as domestic rivals lured affluent buyers with advanced software, competitive pricing, and rapid model cycles.
The German automotive sector is facing challenges of unprecedented proportions. Its companies plan to eliminate more than 55,000 positions, with Volkswagen cutting 35,000 and Mercedes-Benz up to 16,600. Rising energy costs, technology gaps, and three consecutive years of economic contraction have eroded competitiveness.
For Volkswagen, Porsche’s stumble carries particular significance.
An overly ambitious pivot toward an all-electric lineup disrupted production and forced a costly €1.8 billion (about $2.2 billion) retreat toward combustion-powered models as EV demand sagged. Supply gaps for gas-powered models, aggravated by stringent new EU cybersecurity regulations, left showrooms understocked. And US tariffs are expected to cost the automaker about €700 million, threatening profitability in what has now become Porsche’s largest market, surpassing China.
Leiters worked at Porsche for more than a decade before moving to Ferrari, where he was CTO, and then led McLaren Automotive through a three-year transformation ahead of its merger with EV-startup Forseven.
The brand’s unique cars remain instantly recognizable. But the competitive landscape Leiters returns to has radically transformed.
