Former McLaren CEO confirmed as Porsche boss
Oliver Blume is finally making way at Porsche - is Michael Leiters the ideal man to replace him?
It can’t be easy running a global carmaker in such an unforgiving age. The thought of running two at the same time is almost inconceivable - a criticism levelled at Oliver Blume by investors in recent months. Being Chairman of the Executive Board at Porsche and VW Group simultaneously is enough to make anyone’s hair fall out, even when conditions were rosy. But recent results, particularly at Porsche, have made Blume an easy target for people’s dissatisfaction with the brand’s direction of travel - hence confirmation today that he will step down.
According to a terse official statement, this is ‘a mutually agreed early termination of his appointment’ - and insofar as his position had become untenable in the aftermath of Porsche’s strategic climbdown, that is conceivably true. Blume was the primary architect of a plan that might have seen 80 per cent of Porsche’s lineup turned all-electric by 2030 - a plan now formally dropped in the face of unworkably low demand. He will now be expected to turn his attention back to the VW Group exclusively, which faces some of the same problems, albeit at a vastly different scale.
Despite changes made ahead of his departure, filling Blume’s shoes at Porsche will not be easy based on the formidable in-tray his replacement will be presented with - not least the turmoil in China and the US, Porsche's largest markets. Nevertheless, the manufacturer has already lined up a suitable successor in the shape of Michael Leiters, until very recently the CEO of McLaren. His appointment, apparently not entirely signed and sealed when his predecessor's departure was announced - ‘negotiations with Dr. Leiters will be initiated’, Porsche reckoned at the time - was swiftly confirmed half a day later on Friday. 'Dr. Oliver Blume’s successor will be Dr. Michael Leiters,' it confidently declared, citing January 1st as a start date.
“Dr. Michael Leiters has decades of experience in the automotive industry. His leadership style and in-depth expertise are ideal prerequisites for successfully chairing the Executive Board of Porsche AG," said Dr. Wolfgang Porsche, chairman of the board. "He and the entire Executive Board team at Porsche AG enjoy the confidence of the Supervisory Board in overcoming the current challenges."
Leiters, you’ll recall, departed McLaren in the wake of its merger with Forseven, an electric startup headed up by former JLR exec, Nick Collins. While the firm suffered through many of its own problems during his tenure, its CEO was credited with doing much good - not least in transforming the Artura from potential skip fire into a genuine world-beater. His attention to detail was perfected at Ferrari, where his record as CTO is stellar, though it was doubtless forged at Porsche itself, where he spent more than a decade earlier in his career.
The ideal man to shepherd his former employer toward sunlit uplands? A back catalogue that includes the 750S, W1, F8 Tributo, 296 GTB, SF90 Stradale will surely do him no harm, nor an intricate understanding of the Macan and Cayenne. Or, indeed, a proven resistance to going fully electric before the time is right...
This suggests that he knows how to speak to customers of luxury / sports car makers, and knows what they want. Regulatory and tariff pressures aside, these companies need to understand their customers if they are going to succeed.
McLaren, on the other hand, didn't let him say anything about the takeover, then binned him. More and more, this looks like an act of hubris.
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