Porsche CEO Michael Leiters Unveils Strong Crisis Turnaround Plan

Michael Leiters has only been in his role as CEO of Porsche for three months, but this isn’t his first run-in with the German automaker. The executive began his automotive career at Porsche in the 2000s, spending 13 years there before moving on. However, the company he leads now is very different from the one he left behind. Porsche is facing a decline in demand in key markets such as China, reducing sales and brand costs. By its own CEO’s own admission, the brand is “in trouble”. At Porsche’s annual investor presentation today (March 11), Leiters revealed the first details of a turnaround plan focused on cutting costs and a smaller product range. The workload remains high: the company’s sales in 2025 are down 9.5 percent to 36.3 billion euros ($42 billion), and operating profit is down nearly 93 percent to 413 million euros ($478 million).

“In a world of political and economic uncertainty, we are falling short of our standards and market expectations,” Leiters told analysts. “We must find a way to turn these challenges into our opportunities.”

The 54-year-old replaced longtime CEO Oliver Blume in January. Leiters says his extensive background at major and boutique automakers and his experience leading restructuring positions him for the challenge ahead. He previously served as CEO of McLaren, where he oversaw the launch of four models, and spent eight years as chief technology officer at Ferrari. At Porsche, he once led projects for the popular Macan and Cayenne series.

Now he is returning to a company under severe financial pressure. Porsche’s results for 2025 include 3.9 billion euros ($4.5 billion) in lawsuits. That figure includes 700 million euros ($810 million) in costs linked to US taxes, as Porsche still builds most of its cars in Germany. Additional costs include 2.4 billion euros ($2.8 billion) in restructuring and product restructuring, as well as another 700 million euros related to battery systems.

Cutting costs will mean depth. A downsizing plan introduced under Blume led to nearly 4,000 job cuts last year. Leiters said the improvement efforts are “going strong” and acknowledged that previous methods were “no longer sufficient.”

Regardless of trim costs, Leiters wants Porsche to sell quality cars. His strategy calls for expansion beyond core two-door sports models, such as the 911 and Cayenne SUV, while expanding high-margin customization options. This approach, he said, “will allow us to strengthen the uniqueness of the product.”

Despite those ambitions, sales remain weak. Porsche delivered 279,449 vehicles last year, down 10 percent from 2024. In China, a long-term pillar of growth, deliveries are down 26 percent year-on-year to less than 42,000 vehicles by 2025. Increasing local competition and a broader consumer shift towards low-cost domestic electric vehicles from Porsche domestic electric vehicles, including hard-hitting domestic electric vehicles.

That decline reflects a broader retreat from Europe’s top automakers in China. The total number of cars sold in the country, which doubled to 15 percent between 2017 and 2023, is reported to have dropped to 14 percent in 2024 and 13 percent in the first nine months of 2025. Other luxury brands such as Mercedes-Benz, BMW and Ferrari are also struggling in the region.

“I have no doubt that we will succeed in returning Porsche to its former power,” said Leiters. But he warned that recovery will not happen quickly. “It’s going to take time, and it’s going to take discipline and determination.”