Michael Leiters has only been CEO of Porsche for three months, but this is not his first time 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 now leads is very different from the one he left behind. Porsche is facing declining demand in key markets such as China, leading to a sales slowdown and tariff pressure. By its CEO’s admission, the brand is in a “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 range. The task ahead is tough: The company’s 2025 sales fell 9.5% to 36.3 billion euros ($42 billion), and operating profits fell almost 93% to 413 million euros ($478 million).
“In a politically and economically uncertain world, we are falling short of our standards and market expectations,” Leiters told analysts. “We must find a way to turn these challenges into opportunities for ourselves.”
The 54-year-old succeeded longtime CEO Oliver Bloom in January. Leiters says his extensive background in major automakers and 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.
He now returns to a company under severe financial pressure. Porsche’s 2025 results included a charge of 3.9 billion euros ($4.5 billion). This figure includes 700 million euros ($810 million) in costs associated with US tariffs, as Porsche still makes most of its cars in Germany. The additional charges included 2.4 billion euros ($2.8 billion) for restructuring and product reallocation, and another 700 million euros related to battery initiatives.
Cutting costs means deeper cuts. A headcount plan introduced under Bloom cut nearly 4,000 jobs last year. Leiters said these simplification efforts were “intensifying” and admitted that previous measures were no longer “sufficient.”
Beyond cutting costs, Leiters wants Porsche to sell more luxury cars. Its strategy calls for expanding beyond its core two-door sports models, such as the 911 and Cayenne SUV, with increased high-margin customization options. This approach “will allow us to enhance the exclusivity of the brand,” he said.
Despite those ambitions, sales remain weak. Porsche delivered 279,449 vehicles last year, down 10 percent from 2024. In China, a long-time growth pillar, deliveries fell 26 percent year-on-year to less than 42,000 vehicles in 2025. Rising domestic competition and a broader consumer shift toward lower-cost domestic electric vehicles, including models from BYD, have hit Porsche hard.
This contraction reflects a broader decline of European luxury car makers in China. The country’s luxury cars’ share of total sales, which doubled to 15 percent between 2017 and 2023, is reported to be It decreased 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 their momentum in the region.
“I have no doubt that we will succeed in returning Porsche to its former strength,” Leiters said. But he warned that recovery will not happen quickly. “It will take time, and it will take discipline and determination.”
