Change at the Wheel: Porsche to Get New CEO

Oliver Blume will relinquish his role as CEO of Porsche in the coming year, focusing solely on his position as CEO of the Volkswagen Group. A successor has been chosen, ending the dual leadership role that has drawn criticism.

Key Points

Oliver Blume will step down as CEO of Porsche, reportedly in the coming year.
Blume will concentrate on his responsibilities as CEO of Volkswagen (VW).
A male successor has been selected, described as technically skilled and familiar with VW.
The Porsche supervisory board is expected to formally approve the appointment soon.
Blume’s dual role as CEO of both Porsche and VW has faced increasing scrutiny from investors and analysts.
The decision comes amidst challenges for Porsche, including adjusted electric vehicle plans and profit forecasts.

Background

Oliver Blume has been at the helm of Porsche for ten years and simultaneously assumed the role of CEO of Volkswagen in the summer of 2022. This dual leadership structure has been a subject of controversy. Critics, including investors and analysts, argued that it created potential conflicts of interest and placed excessive demands on Blume. Concerns were also raised about Blume's ability to effectively manage both companies simultaneously, with calls for a dedicated CEO for each. Employee representatives also voiced doubts about the long-term viability of the dual mandate. These concerns have seemingly led to the decision to separate the leadership roles, allowing Blume to fully dedicate his attention to the strategic direction and operational management of the Volkswagen Group.

Numbers & Facts

Oliver Blume: Has been CEO of Porsche for 10 years.
Summer 2022: Blume assumed the CEO position at Volkswagen.
€3.1 Billion: Costs incurred by Porsche due to strategic shift in EV plans.
Three: Number of times Porsche has cut its profit forecast this year.
Unspecified Date: Expected time for the formal approval of Blume's successor by the Porsche supervisory board.

Assessment

The change in leadership at Porsche signals a response to growing pressure from investors, analysts, and internal stakeholders regarding the dual role held by Oliver Blume. For Volkswagen, the move allows Blume to focus entirely on the challenges and opportunities facing the larger group, which includes navigating the transition to electric vehicles, managing global supply chains, and addressing market competition. Porsche will benefit from having a dedicated CEO solely focused on the sports car manufacturer's specific needs, strategic direction, and operational performance, particularly as it faces challenges in key markets such as China and adjusts its electric vehicle strategy.

Outlook

The immediate next step involves the formal approval of Blume's successor by the Porsche supervisory board. An official announcement regarding the new CEO is anticipated shortly thereafter. It is expected that the new CEO will focus on addressing Porsche's current challenges, including improving profitability, refining its electric vehicle strategy, and strengthening its position in key markets. The transition in leadership could also lead to potential organizational changes and strategic adjustments within Porsche as the new CEO implements their vision for the company's future.

Source: https://www.tagesschau.de/wirtschaft/unternehmen/blume-porsche-volkswagen-100.html