Oliver Blume will step down as CEO of German sports car maker Porsche, the manufacturer announced Friday.
He also holds the same position at the Volkswagen Group, Porsche’s parent company, a dual position that has drawn widespread criticism amid years of struggle for the German auto industry.
Blume will remain head of Volkswagen, Porsche’s supervisory board said in a statement.
He has been CEO of Porsche since 2015 and took over as CEO of Volkswagen in 2022 following the resignation of Herbert Diess.
Porsche said Blume’s likely replacement would be Michael Leiters, who was previously CEO of British sports car company McLaren.
What was the criticism of Blume’s dual position at Porsche and Volkswagen?
Shareholders sharply criticized Blume taking on the role of CEO of Porsche and its parent company, arguing that it represented too difficult a workload as well as a potential source of conflicts of interest.
Hendrik Schmidt, of asset management firm DWS, criticized Blume’s role as that of a “part-time CEO”.
Blume had previously argued that the fact that he was CEO of both companies was actually advantageous.
Blume named CEO of Porsche
Blume was appointed head of Volkswagen after a successful experience at Porsche.
He took over Porsche in 2015, which was already the most successful year for the company at the time. Under his leadership, Porsche more than doubled its after-tax profit.
In September 2022, Porsche raised almost 9.4 billion euros ($11 billion) in its initial public offering (IPO) on the stock market.
The German auto industry has been struggling in recent years, with its Chinese competitors outpacing it in the electric vehicle (EV) market. Volkswagen is experiencing a serious sales and cost crisis that company management says requires plant closures and layoffs.
Edited by: Wesley Rahn
