Porsche’s New CEO Michael Leiters Outlines Turnaround Plan Amid Company ‘Crisis’
Michael Leiters is only three months into his role as CEO of Porsche, but this isn’t his first run with the German carmaker. The executive began his auto career at Porsche in the 2000s, spending 13 years there before moving on. Yet the company he now leads is very different from the one he left behind. Porsche is grappling with declining demand in key markets like China, slowing sales and the strain of tariffs. By its CEO’s own admission, the brand is in “crisis.” At Porsche’s annual investor presentation today (March 11), Leiters outlined early details of a turnaround plan centered on cost-cutting and a leaner product lineup. The task ahead is steep: the company’s 2025 sales fell 9.5 percent to 36.3 billion euros ($42 billion), and operating profit plunged nearly 93 percent to 413 million euros ($478 million).
“In a politically and economically uncertain world, we’re falling short of our standards and the expectations of the market,” Leiters told analysts. “We must find a way to turn these challenges into opportunities for ourselves.”
The 54‑year‑old executive succeeded long‑time CEO Oliver Blume in January. Leiters says his broad background across major and boutique automakers and his experience leading restructurings position him for the challenge ahead. He previously served as CEO of McLaren, where he oversaw the release of four models, and spent eight years as Ferrari’s chief technology officer. At Porsche, he once led projects for the popular Macan and Cayenne series.
He returns now to a company under intense financial pressure. Porsche’s 2025 results included 3.9 billion euros ($4.5 billion) in charges. That figure included 700 million euros ($810 million) in costs linked to U.S. tariffs, as Porsche still builds most of its vehicles in Germany. Additional charges encompassed 2.4 billion euros ($2.8 billion) for restructuring and product reshuffling, and another 700 million euros related to battery initiatives.
Cutting costs will mean cutting deeper. A headcount reduction plan introduced under Blume led to nearly 4,000 job cuts last year. Leiters said these streamlining efforts are “intensifying” and admitted the earlier measures were no longer “sufficient.”
Beyond trimming expenses, Leiters wants Porsche to sell more high‑end cars. His strategy calls for expanding beyond its core two‑door sports models, such as the 911 and Cayenne SUV, while increasing high‑margin customization options. This approach, he said, will “allow us to strengthen the exclusivity of the brand.”
Despite those ambitions, sales remain weak. Porsche delivered 279,449 vehicles last year, down 10 percent from 2024. In China, a longtime pillar of growth, deliveries sank 26 percent year over year to fewer than 42,000 vehicles in 2025. Rising local competition and a broader consumer shift toward lower‑cost domestic electric cars, including models from BYD, have hit Porsche hard.
That downturn mirrors a wider pullback from European luxury automakers in China. The country’s premium‑car share of total sales, which doubled to 15 percent between 2017 and 2023, reportedly fell to 14 percent in 2024 and 13 percent in the first nine months of 2025. Other luxury brands like Mercedes‑Benz, BMW and Ferrari have also struggled to regain momentum in the region.
“I have no doubt whatsoever that we will succeed in restoring Porsche to its former strength,” Leiters said. But he cautioned that recovery won’t happen quickly. “It will take time, and it will take discipline and determination.”