Michael Leiters is only three months into his role as CEO of Porschebut this isn’t his first run-in with the German carmaker. The executive began his automotive career at Porsche in the 2000s, spending 13 years there before moving on. However the company he runs now is very different from the one he left behind. Porsche is facing Declining demand in key markets such as China, slowing sales and straining rates. By the 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 focused on cutting costs and a leaner product line. The task ahead is steep: the company’s 2025 sales fell 9.5 percent to 36.3 billion euros ($42 billion), and operating profit fell nearly 93 percent to 413 million euros ($478 million).
“In a politically and economically uncertain world, we are not in line with our standards and market expectations,” Leiters told analysts. “We have to find a way to turn these challenges into opportunities for ourselves.”
The 54-year-old executive succeeded longtime CEO Oliver Blume in January. Leiters says his extensive background in major and boutique automakers and his experience leading restructuring position him for the challenge ahead. He previously served as CEO ofMcLarenwhere he oversaw the release of four models, and spent eight years as Ferrarichief technology officer. At Porsche, he once led projects for the popular Macan and Cayenne series.
He now returns to a company under great financial pressure. Porsche’s results for 2025 included 3.9 billion euros ($4.5 billion) in charges. That figure included 700 million euros ($810 million) in costs related to the US tariffs, as Porsche still builds most of its vehicles in Germany. Additional charges included 2.4 billion euros ($2.8 billion) for restructuring and product realignment, and another 700 million euros related to battery initiatives.
Cutting costs means cutting deeper. A downsizing plan introduced under Blume led to about 4,000 job cuts last year. Leiters said these efforts to improve were “intensifying” and admitted that previous measures were no longer “enough”.
Beyond cutting costs, Leiters wants Porsche to sell more high-end cars. Its strategy calls for expansion beyond the two-door sports flagships, 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 these ambitions, sales remain weak. Porsche delivered 279,449 vehicles last year, down 10 percent from 2024. In China, a longtime pillar of growth, deliveries fell 26 percent year-on-year to fewer than 42,000 vehicles in 2025. Increased local competition and a broader consumer shift to lower-cost models from domestic electric cars.BYDhave hit Porsche hard.
The decline reflects a broader retreat by European luxury carmakers in China. The country’s share of premium cars in total sales, which doubled to 15 percent between 2017 and 2023, it said falling 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 have also struggled to regain momentum in the region.
“I have no doubt that we will succeed in restoring Porsche to its former strength,” said Leiters. But he warned that the recovery will not happen quickly. “It will take time and it will take discipline and determination.”
