Analysis-Porsche's new CEO will inherit old problems

Core Insights - Porsche is expected to report a significant operating loss of 611 million euros ($713 million) for Q3, a stark contrast to a profit of 974 million euros in the same period last year, primarily due to challenges in the Chinese market and high costs associated with its electric vehicle (EV) transition [5][6]. Group 1: Company Performance - The company is facing a deep operating loss as it struggles with a severe downturn in the Chinese market and pressures from U.S. tariffs while reversing its shift to electric vehicles [1][4]. - Since its listing in 2022, Porsche has lost approximately half of its market value, indicating significant challenges in maintaining investor confidence [4]. Group 2: Leadership Changes - Porsche has appointed Michael Leiters, former McLaren CEO, as the new CEO starting in January, with hopes of reviving demand in China and addressing the challenges of the EV transition [2][3]. - The outgoing CEO, Oliver Blume, will remain at Volkswagen, and he anticipates positive momentum for Porsche starting from 2026, although analysts are less optimistic [7]. Group 3: Market Challenges - The luxury sports car segment has not yet fully embraced electric vehicles, posing a major challenge for Porsche as it seeks to transition to EVs [5]. - Sales in China have significantly declined, with only 32,195 cars delivered in the first nine months of 2025, more than halving compared to the same period in 2022 [8]. Group 4: Restructuring Efforts - The new CEO will need to implement a restructuring program that includes 1,900 job cuts in the coming years, in addition to 2,000 layoffs of temporary workers this year [8]. - Analysts suggest that resolving Porsche's current issues could take three to five years, indicating a long road ahead for recovery [7].