Oliver Blume is to step down as CEO of German sports car maker Porsche, the company said on Friday.
He also holds the same role at Porsche’s parent company, Volkswagen Group, a dual position that has attracted significant criticism amid years of struggle for the German car industry.
Blume will remain at the helm of Volkswagen, Porsche’s supervisory board said in a statement.
He has been CEO of Porsche since 2015 and takes over at Volkswagen in 2022 following the resignation of Herbert Diess.
Porsche said Bloom’s potential replacement is Michael Leiters, who previously served as CEO of UK-based sports car company McLaren.
What was Bloom’s criticism of his dual position at both Porsche and Volkswagen?
Shareholders had been highly critical of Blume, who held the CEO role at both Porsche and its parent company, arguing that it represented an extremely challenging workload as well as a potential source of conflict of interest.
Hendrik Schmidt of DWS asset management company critically described Bloom’s role as a “part-time CEO”.
Bloom had previously argued that the fact that he served as CEO of both companies was actually beneficial.
Bloom serves as CEO of Porsche
Blume was brought in to lead Volkswagen after a successful performance at Porsche.
He acquired Porsche in 2015, which at the time was the most successful year ever for the company. Under his leadership, Porsche more than doubled its after-tax profits.
In September 2022, Porsche raised approximately €9.4 billion ($11 billion) in its initial public offering (IPO) on the stock market.
Germany’s auto industry has struggled in recent years, with Chinese rivals overtaking it in the electric vehicle (EV) market. Volkswagen is facing a severe sales and cost crisis, which company management says requires plant closings and layoffs.
Edited by: Wesley Rahn