Porsche has appointed Dr Michael Leiters as its incoming chief executive officer, selecting a seasoned German engineer with deep expertise in luxury vehicle development from stints at McLaren Automotive and Ferrari to guide the company through a period of strategic recalibration. The 54-year-old Leiters will assume the role on 1 January 2026, succeeding Dr Oliver Blume, who will continue leading parent company Volkswagen Group for another five years until the end of 2030, as confirmed by Porsche Newsroom. This transition ends Blume’s dual leadership, which had drawn criticism from investors concerned about divided focus amid mounting pressures.
Leiters brings a proven history of championing hybrid technologies, notably during his initial tenure at Porsche from 2000 to 2013, where he spearheaded the development of the hybrid variant of the Cayenne SUV—a model that propelled the brand’s expansion into broader luxury performance territory. As reported by Reuters, he rejoins Porsche at a critical juncture, with the company implementing cost-saving measures, including job reductions, and refocusing on hybrids and internal combustion engines after an ambitious electrification push eroded profit margins. The shift comes as Porsche grapples with external headwinds, such as escalating tariff expenses and a sharp downturn in Chinese sales.
In China, Porsche’s deliveries plummeted 28 per cent in the first half of 2025, reaching just 21,300 units amid fierce competition from domestic players like BYD and Xiaomi, which offer feature-rich electric vehicles at aggressive price points, according to Carscoops. Globally, sales dipped six per cent to 146,391 vehicles in the same period, with Europe down eight per cent and Germany—Porsche’s home market—slumping 23 per cent to 16,000 units. Analysts at RBC Capital Markets have described the path ahead as arduous, pointing to persistent US tariff hurdles and China’s softening demand as formidable barriers to recovery.
Leiters faces the task of reconciling substantial investments in fresh model lineups with imperatives for expense reductions in Germany, where ongoing discussions with labor unions seek further efficiency enhancements. In the United States, Porsche’s largest single market, the absence of domestic manufacturing facilities leaves it vulnerable to potential import tariffs under President Donald Trump’s administration, exacerbating cost pressures. These challenges have compounded internal woes, with Volkswagen’s erstwhile profit powerhouse revising its financial guidance downward four times in 2025 alone.
The company’s share price has tumbled approximately 25 per cent this year, culminating in its ejection from Germany’s prestigious DAX index on 22 September 2025—the first such relegation since its 2022 listing—following a 33 per cent decline over the prior 12 months driven by US tariffs and Chinese market weakness, as detailed by Bloomberg. Relocated to the midcap MDAX index, Porsche’s ousting underscores broader vulnerabilities, though CEO Blume has expressed ambitions for a swift return, attributing part of the issue to a low free float.
Compounding these issues, demand for Porsche’s Taycan electric vehicle has waned significantly, with US sales halving in the second quarter of 2024 compared to the previous year, a trend persisting into 2025 amid inventory clearances ahead of model updates and shifts in federal tax incentives, per The Drive. Battered by elevated production costs and softening EV appetite, Porsche has deferred a battery-electric luxury SUV, postponed multiple other electric launches, and committed to bolstering its hybrid and combustion offerings to fortify the portfolio. The forthcoming electric Cayenne variant, slated for release in the coming months, will serve as a litmus test for this recalibrated approach.
Leiters’ engineering pedigree and production acumen position him ideally for this revamp. Holding a doctorate in engineering from RWTH Aachen University, he oversaw the Cayenne and Macan lines during his Porsche years, contributing to the SUV’s status as the brand’s top seller through 2024. At Ferrari from 2014 to 2019 as chief technology officer, he drove the debut of the plug-in hybrid SF90 Stradale, boasting around 1,000 horsepower, and contributed to the early conceptualisation of the Purosangue SUV, which has since boosted the Italian marque’s profitability.
His subsequent role as McLaren CEO from July 2022 to April 2025 involved quality enhancements, including refinements to the hybrid Artura supercar, though financial stabilisation proved elusive amid the company’s merger with EV startup Forseven. Leiters also advocated for McLaren’s SUV market entry, reflecting his forward-thinking on diversification. This blend of experiences aligns with Porsche’s hybrid pivot, potentially aiding navigation of the sector’s turbulence.
The luxury automotive landscape remains fraught, with peers like BMW, Mercedes, and Audi contending with sluggish Chinese performance, where their EVs lag in affordability and software sophistication. Tepid European sales and US tariffs further strain near-term prospects. Even as Porsche dials back EV commitments, premium brands must sustain relevance in electrification; Ferrari’s recent unveiling of its inaugural EV, the Elettrica, was overshadowed by investor-disappointing forecasts and scaled-back targets, as noted by Automotive News.
In South Africa, where Porsche enjoys a niche but loyal following—delivering around 1,200 vehicles annually amid a luxury market buoyed by affluent consumers—these global shifts resonate acutely. Local sales dipped five per cent in the first half of 2025, mirroring international trends, yet the Cayenne’s enduring appeal and impending hybrid updates could stabilise demand, according to Cars.co.za. Leiters’ appointment signals a pragmatic course correction, blending heritage strengths with adaptive innovation to restore Porsche’s competitive edge in an era of flux.