By Rachel More
BERLIN (Reuters) -Porsche named Michael Leiters, former CEO of McLaren, as a potential successor to CEO Oliver Blume on Friday, in a move to end Blume’s dual leadership role after criticism from investors.
Blume took the helm at Porsche 10 years ago but for the past three years has also been CEO of parent Volkswagen. Both automakers are undergoing restructuring that some investors have said requires a CEO’s undivided attention.
“Negotiations with Dr. Leiters will be initiated,” Porsche said in a statement on Friday, adding that leading members of the supervisory board had authorised the body to begin talks with Blume on ending his CEO contract at Porsche.
There is no plan for Blume to step down from Volkswagen. Porsche and VW face major challenges from tariffs, weak Chinese demand and a costly shift to electric vehicles.
Several German media reported earlier Friday that Porsche’s supervisory board had agreed to part with Blume so that he could focus on Volkswagen, with the Bild newspaper citing six sources as saying he would leave next year.
Volkswagen did not immediately respond to requests for comment.
During the three years of Blume’s dual role shares in Volkswagen have fallen by more than a third, while Porsche’s stock is down more than half.
Punished for the stock market decline since its listing three years ago, Porsche exited the blue-chip DAX last month.
Porsche has struggled particularly in its key market China and Blume recently announced a costly strategy reversal, away from EVs and back towards combustion engine models.
(Reporting by Rachel More. Writing by Friederike Heine; Editing by Mark Potter and Elaine Hardcastle)
