Michael Leiters is no stranger to Porsche. Between 2000 and 2013, he played a critical role in the company’s rise, especially with the success of the Cayenne SUV. His deep roots with the brand and long-standing experience in luxury performance made him the natural choice during a time of instability.

After leaving Porsche, Leiters served as Chief Technology Officer at Ferrari where he pushed hybrid innovation. Later, as McLaren’s CEO, he led the launch of models like the 750S and the Artura plug in hybrid, both of which energized the brand’s slow electric pivot. Now back at Porsche, he brings a rare mix of technical and executive leadership that Porsche’s board believes can help stabilize the brand’s future direction.

One of the key moves in this transition is separating Porsche’s leadership from Volkswagen’s. For years, critics warned that one person running both companies created conflicts and delays. With Oliver Blume staying at Volkswagen and Leiters taking over Porsche, the brand is now free to sharpen its focus.

This separation signals a major cultural and strategic shift. Porsche wants to revive its image as a performance innovator, not just a luxury nameplate riding on old glory. By betting on Leiters, Porsche is leaning into product development, sharper branding, and focused global expansion.

Leiters steps in during a rocky time. Porsche’s electric sales have slowed down despite the company investing over 1.8 billion euros into its EV infrastructure. Meanwhile, sales in China are weakening and rising tariffs on exports to the United States have cut into profits.

The most alarming concern is Porsche’s operating margin, which is projected to drop to just 2 percent in 2025. Investors had grown critical of former CEO Blume’s dual leadership of both Porsche and Volkswagen Group, arguing it slowed decision making and strategic clarity. Leiters now has full focus to reposition Porsche, especially in a luxury EV market dominated by Tesla, BMW, and Mercedes.

Many industry analysts believe this decision could bring Porsche back to profitability and give it a fighting chance in the fast moving electric luxury segment.