Porsche braces for losses and leadership change

German carmaker Porsche is going through a tough period: sales in China have more than halved, delays in its electric vehicle rollout have led to losses, and investor confidence is fading. Starting in January, former McLaren boss Michael Leiters will take over as CEO, tasked with cutting jobs and steering the brand back to growth.

Porsche is expected to report a third-quarter operating loss of around 611 million euros, according to analyst estimates. The company has been hit by slumping demand in China, U.S. tariff pressures, and costly setbacks in its EV transition. Since going public in 2022, Porsche’s stock has lost nearly half its market value.

Leiters, who previously worked as an engineer at Ferrari, will lead a restructuring plan that includes cutting nearly 4,000 jobs and overhauling the company’s strategy. Investors remain cautious. Ingo Speich of Deka Investment said, “It’s still unclear how Porsche will make money going forward.”

The new CEO’s top priorities will be winning back Chinese customers and reviving Porsche’s electric vehicle program. Over the first nine months of this year, Porsche’s sales in China fell by more than half compared to 2022. Analysts believe it could take three to five years for the company to recover.