Porsche’s search for a new CEO to replace Oliver Blume underscores a classic governance challenge in Europe’s automotive industry: concentration of leadership amid diverging corporate priorities. Blume has led both Porsche and Volkswagen, but with global headwinds — weak demand in China, punitive U.S. tariffs, and the immense capital requirements of electrification — investors are increasingly impatient with divided leadership.

Porsche’s profits have collapsed by over 90% in the second quarter, its financial outlook has been cut twice this year, and its stock has fallen 45% since its much-heralded 2022 IPO. The company now faces not only cyclical pressures but also a structural reckoning as the industry shifts to EVs.

The Porsche-Piëch family, which retains decisive control of VW Group through Porsche SE, is reportedly close to choosing a successor, with both internal and external candidates under consideration. The leadership handover, likely by early 2026, is seen by investors as necessary for restoring strategic clarity and stabilizing Porsche’s valuation, while allowing Blume to dedicate his attention fully to Volkswagen’s urgent restructuring.

This episode is emblematic of the broader European industrial struggle: managing corporate governance, investor confidence, and technological transition simultaneously in an era of geopolitical and economic turbulence.