Porsche Opens Vacancies For New CEOs, End Of Double Position Era?

Porsche logo. (Photo: Porsche AG)

JAKARTA Porsche is rumored to have started a search for CEO Oliver Blume's successor, a move that is likely to end Blume's dual position as a leader in luxury sports carmaker and parent company Volkswagen.

According to a Reuters report, quoted on Thursday, August 28, this news, which was first reported by WirtschaftsWoche magazine, was positively welcomed by the market, with Porsche shares immediately up about 1 percent.

Since Porsche took the floor as a separate company in September 2022, Blume's dual role has become a sensitive issue among shareholders. Many investors have repeatedly asked him to step down from one of the positions due to corporate governance issues.

A source close to the matter stated that talks about succession are ongoing, and the appointment of a new CEO is expected to take place in the fall. Candidates considered come from both internal and external.

While Blume has previously stated that these dual positions will not be permanent, he recently said that there is no definite date to end the role.

A number of names have emerged as candidates to replace Blume, who has led Porsche for a decade. Daily Handelsblatt reported several potential names, including Michael Steiner, a member of the Porsche research and development board who also serves as Blume's representative. Then there is Stefan Weckbach, head of the Volkswagen group strategy, and Frank-Steffen Walliser, CEO of Bentley to Klaus Zellmer, CEO of Skolda.

This change of leadership comes amid the expensive restructuring that Porsche faces. The company is struggling with challenges such as weak demand in China, a slow transition to electric vehicles, and an increase in US rates that forced it to cut its annual profitability target. Since the IPO in 2022, Porsche's shares have fallen by about 45 percent