Frankfurt (Germany) (AFP) – The former head of British supercar maker McLaren could take over as CEO of Porsche, the German firm said Friday, as it struggles with weak demand and a troubled shift to electric cars. Michael Leiters, who headed McLaren from 2022 to April this year, “is available as a potential successor” to current chief executive Oliver Blume, and talks will be initiated, Porsche said in a statement.
Blume has for several years been boss of both Volkswagen and Porsche, one of the German titan’s subsidiaries, but has faced pressure to drop the dual role and focus on overhauling the broader VW group. Leiters previously worked at Porsche for 13 years as well as at Italy’s Ferrari.
Blume, meanwhile, will remain CEO of Volkswagen Group, signing a five-year term that begins January 1, the company said Friday. “In the last three years, Oliver Blume has impressively demonstrated his ability to advance and develop the Volkswagen Group’s strategy and business operations in a challenging environment,” VW’s board chairman Hans Dieter Poetsch said in a statement.
Talks will begin with Blume about “a mutually agreed early termination” of his CEO post, Porsche added. German newspaper Bild reported that Blume would give up the CEO role next year.
Like other German carmakers, Porsche has been struggling with weak demand in Europe and fierce competition in China, while tariffs in the United States, its top market, have added to headwinds. Last month, the maker of the iconic 911 sports car also hit the brakes on its shift to electric vehicles, saying demand had increased more slowly than expected.
It announced measures including delays in introducing some fully electric cars and extending the lifespan of some combustion engine and hybrid models, with VW warning the changes would deliver a hefty financial hit. In February, Porsche announced 1,900 job losses and has warned of more cost cuts ahead.
And last month it was excluded from Germany’s blue-chip DAX stock index after its shares tanked. The broader VW group, which makes 10 different brands including Audi and Skoda, has been struggling with the same issues afflicting Porsche. It announced last year plans to cut 35,000 jobs in Germany by 2030.
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