Oliver Blume Remains at the Helm of Porsche Amidst Speculation

Volkswagen and its luxury subsidiary Porsche continue to navigate a challenging financial landscape, as both brands reported significant declines in profits during the first half of the year. The central figure in this crisis is Oliver Blume, the CEO of the Volkswagen Group, who has expressed a desire to step down from his leadership role at Porsche. This information was revealed by sources cited in the Wirtschaftswoche.

According to insider reports, discussions regarding Blume's successor are already underway. These conversations involve various stakeholders, including Blume, Volkswagen's supervisory board chairman Hans Dieter Pötsch, representatives from the Porsche and Piëch families, and labor representatives. The aim is to announce a successor by autumn, with the transition expected to be completed by early 2026. It remains uncertain whether the position will be filled internally or through an external candidate, as preferences among the involved parties differ.

Blume has been leading Porsche for the past decade and took over as CEO of Volkswagen in 2022. His dual role has faced criticism from shareholders, who have raised concerns about potential conflicts of interest. Blume has stated that this dual capacity is not intended to be permanent, although he has not specified an end date.

Both Volkswagen and Porsche have officially declined to comment on the rumors, asserting that they do not discuss speculation. However, sources within the company confirm that Blume will continue in his positions at both Porsche and Volkswagen, with the support of the ownership families.

Porsche is currently under significant pressure due to a collapse in its business in China. The ongoing real estate crisis in the country has discouraged affluent customers from purchasing new sports cars. Additionally, Porsche's business in the United States is also facing challenges due to tariffs imposed by former President Donald Trump.

Another area of concern for Porsche is its struggle to attract customers with its electric vehicle lineup. The company had aimed to position itself as a leader in electric mobility through its subsidiary, Cellforce, but now faces potential job cuts affecting around 200 positions as it scales back its ambitions in this sector.

Recent quarterly results released at the end of July highlighted the severity of the situation, revealing that Porsche's profits from automotive operations plummeted to just 154 million euros in the second quarter, down from approximately 1.7 billion euros the previous year--an alarming decline of nearly 91 percent. Furthermore, Volkswagen's half-year results indicated a revenue decrease of around 12.9 percent, totaling just over 8.3 billion euros.