Porsche begins CEO search likely to end dual VW role, source says

By Christina Amann and Rachel More

BERLIN (Reuters) -Porsche has begun the search for a successor to CEO Oliver Blume, a source close to the matter said, signalling what is likely to be the end of his dual role at the helm of the luxury sports car maker and parent Volkswagen.

Blume's twin posts have been a contentious issue among shareholders since Porsche's listing as a separate company in September 2022, with investors repeatedly calling for him to step down from one of the positions over governance concerns.

Though Blume has repeatedly stated that the dual role was not designed to be permanent, he said this month that a date to sever the connection has not been set and "we will see how we get on this year".

Volkswagen, Porsche AG and Porsche SE - the investment vehicle of the Porsche and Piech families, which holds most of Volkswagen's voting rights - all declined to comment.

Porsche shares gained 1.1% on the news, which was first reported by WirtschaftsWoche.

The magazine cited company and financial sources as saying that talks on Blume's succession were ongoing and an appointment was expected in the autumn, with both internal and external candidates under consideration.

"Such a move would alleviate corporate governance concerns," said Metzler Equities analyst Pal Skirta, pointing to questions over allocation of resources and time, given the scale of both companies and the structural challenges facing the industry.

The Porsche and Piech families voiced their continued backing of Blume at Porsche SE's annual general meeting in May.

Porsche is undergoing a costly restructuring as it contends with weak demand for its sports cars in China, a sluggish transition to electric vehicles and increased U.S. tariffs that have prompted it to cut its full-year profitability target.

Shares in Porsche, which listed in 2022 with a higher valuation than Volkswagen, have since fallen by about 45%.

(Reporting by Christina Amann and Rachel MoreAdditional reporting by Amir Orusov Writing by Christoph SteitzEditing by Tomasz Janowski, Thomas Seythal and David Goodman)