23rd October 2025 – (Stuttgart) Porsche has named Michael Leiters as its new chief executive, selecting a known sceptic of battery-powered luxury vehicles to lead the company at a pivotal moment. Mr Leiters, who will assume the role in January, previously voiced reservations about electric vehicle technology during his tenure as head of McLaren, citing a lack of emotional thrill and concerns over residual values.
The appointment arrives as the Stuttgart-based sports car maker executes a pronounced strategic shift, tempering its earlier electric ambitions and directing fresh investment into petrol engine development. This recalibration follows a series of financial setbacks that have impacted the marque’s performance.
Long regarded as a cornerstone of profitability within the Volkswagen Group, Porsche’s stature has been challenged. Despite accounting for a modest 3.6 per cent of VW’s global vehicle deliveries over the past three years, the brand contributed nearly 30 per cent of the group’s operating profit. However, its share price has fallen dramatically from a peak in May 2023, pressured by profit warnings and a market slump in China.
The company’s revised outlook includes a sharp reduction in its operating margin forecast for 2025, now set between zero and two per cent, a considerable drop from the 14 per cent achieved the previous year. In response to these pressures, Porsche has announced plans to reduce its workforce by 3,900 roles by 2029 and is engaged in discussions with unions to identify further cost-saving measures.
Market challenges are particularly acute in China and the United States. Sales in China have declined by almost 40 per cent between 2022 and 2024 amid rising competition from domestic manufacturers. In the US, the company faces newly imposed tariffs on all its vehicles, which are imported entirely from Europe.
Operationally, the manufacturer has shelved plans for a new electric SUV, resulting in a €1.8 billion impairment charge, and is now revisiting development of combustion and hybrid successors for key models like the Macan. This strategic U-turn comes after what analysts describe as an overly optimistic initial bet on electrification following the Volkswagen Group’s Dieselgate scandal.
Mr Leiters, a former Porsche executive and ex-Ferrari chief technology officer, is seen as uniquely qualified to navigate this complex landscape. Independent analysts suggest his blend of internal knowledge and external perspective will be critical in addressing persistent issues, including software-related delays for new electric products and the broader challenge of preserving brand prestige while adapting to market realities.
