How Will Porsche CEO Approach Sustainability After EV Shock?
The automotive industry's transition to sustainable powertrains faces increasing scrutiny as Porsche's recent strategic pivot highlights the complex challenges luxury manufacturers encounter when balancing environmental commitments with market realities.
Following the announcement of Michael Leiters' appointment as the new Porsche CEO on 17 October 2025, current CEO Oliver Blume will be delivering his last quarterly report at the end of October. He is expected to announce a substantial operating loss, primarily due to a large decrease in sales in China and pressure from US tariffs.
The average forecast of 15 analysts polled by Visible Alpha estimates the loss at €611m (US$713m) for the third quarter of 2025 against a €974m (US$1.1bn) profit last year.
Electrification strategy under pressure
The figures also reflect the German sports car maker's costly reversal of its shift to electric vehicles (EVs), announced on 19 September 2025. This decision represents a major setback for sustainable mobility ambitions within the luxury automotive sector, raising questions about the viability of rapid electrification timelines across the industry.
Porsche said the pull-back on its EV rollout is down to weaker demand for luxury EVs and pressure from the Chinese and US markets. Porsche said: "Due to the delayed ramp-up of electromobility, the market launch of certain all-electric vehicle models is planned to take place at a later date."
Acknowledging Porsche's recent changes due to shifts in Porsche's two biggest markets, Oliver said: "That is why we have structurally realigned the company this year and comprehensively expanded our product strategy." He believes Porsche is "robustly positioned" for years to come.
Leadership change amid sustainability crossroads
Dr Wolfgang Porsche, Chairman of the Supervisory Board of Porsche, said: "Dr Michael Leiters has decades of experience in the automotive industry. His leadership style and in-depth expertise are ideal prerequisites for successfully chairing the Executive Board of Porsche AG.
"He and the entire Executive Board team at Porsche AG enjoy the confidence of the Supervisory Board in overcoming the current challenges."
The new CEO is tasked with navigating the tension between environmental responsibility and commercial viability, although Porsche has faced its own challenges when it comes to being one of the key EV makers in Europe's auto sector. Reuters reports that since listing in 2022, Porsche has lost around half of its market value.
According to Reuters, Ingo Speich, Head of Sustainability and Corporate Governance at Deko Investment - which holds around US$28m of Porsche stock - said: "After several profit warnings in a year, visibility for the business model remains very limited.
"Porsche faces a major challenge: in the luxury sports car segment, electric vehicles have not yet been accepted by customers. The key question is: will the new CEO succeed in leading Porsche into the electric vehicle segment?"
Combustion engines versus decarbonisation goals
The Financial Times has previously reported that Porsche's new boss was sceptical about the use of battery motors for luxury vehicles when he was CEO of British supercar manufacturer McLaren. He said in an interview with the Financial Times when he was in his past role that "the technology isn't ready", that EVs lack the emotional thrill of noisy engines and are "quicker to lose their value".
The decision to stay with combustion engines comes with its risks - according to Metzler Research Analyst Pal Skirta.
Discussing the move, Pal said: "That's the risk of the strategy that they will focus too much on combustion engine vehicles, and then we'll lose the EV race in the long run."
This strategic retreat could have broader implications for the automotive industry's decarbonisation trajectory, particularly as regulatory pressures intensify across global markets. In a recent interview with the Financial Times, Sajjad Khan, Porsche Board Member for IT and Software, said the quality of their cars and technologies will be better in 2026 and 2027. He said: "We have to work hard to execute perfectly."
Michael will be tasked with leading the decision to stick with the u-turn or make greater commitments to EVs.
Oliver said: "I am delighted that Michael Leiters, an experienced professional in the sports car business, is taking on the role. He and the new management team have my full confidence. I wish them every success."
