German luxury automaker Porsche AG has commenced negotiations to terminate the contracts of Chief Financial Officer (CFO) Lutz Meschke and Sales Director Detlev von Platen ahead of schedule, according to a statement released by the company’s supervisory board on Saturday. This strategic move aims to address weakening financial performance and a significant downturn in Chinese market sales.
The discussions, first reported by Germany’s largest-circulation newspaper Bild, were later confirmed by Porsche in an official communiqué. The publication highlighted that both executives faced internal criticism over the company’s underwhelming financial results and stagnant share price. Porsche has declined to comment further on the matter.
Financial and Market Challenges In 2024, Porsche delivered 310,718 vehicles globally, marking a 3% year-over-year decline. Notably, deliveries in China plummeted by 28%, with only 56,887 units sold—a stark contrast to the brand’s historical performance in its largest single market.
Table displaying Porsche AG deliveries from January to December 2023 and 2024. The worldwide total dropped from 320,221 in 2023 to 310,718 in 2024 (-3%). Germany rose from 32,430 to 35,858 (+11%), North America went from 86,059 to 86,541 (+1%), China fell from 79,283 to 56,887 (-28%), Europe (excluding Germany) climbed from 70,229 to 75,899 (+8%), and Overseas and Emerging markets increased from 52,220 to 55,533 (+6%).
Restructuring Sales Networks in China Porsche China announced on January 13, 2024, that it had reduced its sales network to approximately 140 dealerships by the end of the year, with plans to further streamline operations to around 100 outlets by 2027. This decision aligns with CFO Lutz Meschke’s earlier disclosure during Porsche’s Q3 2024 investor call, where he emphasized a “significant reduction” in the Chinese dealership network.
Strategic Realignment Efforts To bolster its competitiveness, Porsche China established a dedicated technical division on December 4, 2024. This department integrates local procurement, quality assurance, and R&D operations, reporting directly to the CEO of Porsche China. The initiative underscores the company’s commitment to adapting its strategy to regional market dynamics.
On January 24, Tesla officially unveiled the redesigned Model Y in select Shanghai stores. According to sources at Tesla’s store in Shanghai, the first batch of the new Model Y vehicles will begin delivery between late March and early April. The same day, Tesla’s U.S. website announced the launch of the new Model Y, about …
Porsche Initiates Executive Restructuring Amid Declining China Market Performance
German luxury automaker Porsche AG has commenced negotiations to terminate the contracts of Chief Financial Officer (CFO) Lutz Meschke and Sales Director Detlev von Platen ahead of schedule, according to a statement released by the company’s supervisory board on Saturday. This strategic move aims to address weakening financial performance and a significant downturn in Chinese market sales.
The discussions, first reported by Germany’s largest-circulation newspaper Bild, were later confirmed by Porsche in an official communiqué. The publication highlighted that both executives faced internal criticism over the company’s underwhelming financial results and stagnant share price. Porsche has declined to comment further on the matter.
Financial and Market Challenges
In 2024, Porsche delivered 310,718 vehicles globally, marking a 3% year-over-year decline. Notably, deliveries in China plummeted by 28%, with only 56,887 units sold—a stark contrast to the brand’s historical performance in its largest single market.
Restructuring Sales Networks in China
Porsche China announced on January 13, 2024, that it had reduced its sales network to approximately 140 dealerships by the end of the year, with plans to further streamline operations to around 100 outlets by 2027. This decision aligns with CFO Lutz Meschke’s earlier disclosure during Porsche’s Q3 2024 investor call, where he emphasized a “significant reduction” in the Chinese dealership network.
Strategic Realignment Efforts
To bolster its competitiveness, Porsche China established a dedicated technical division on December 4, 2024. This department integrates local procurement, quality assurance, and R&D operations, reporting directly to the CEO of Porsche China. The initiative underscores the company’s commitment to adapting its strategy to regional market dynamics.
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