Porsche has no plans to reconsider dual CEO rule

Frankfurt — Porsche CEO Oliver Blume says there is no time frame planned to re-evaluate his dual role as head of the newly independent sports car maker and the Volkswagen Group, describing it as a deliberate decision.

Porsche shares were trading up 2.4% at 10.07am GMT from their opening price of €84, reaching a market capitalisation of €78.5bn —  close to the €81bn valuation of former parent Volkswagen.

“We are very positive about the first price. Of course we had a gut feeling — the feedback we got from investors was very positive, Blume said, speaking next to a Porsche Taycan parked outside the Frankfurt stock exchange.

Blume brushed aside concerns about his dual CEO role, saying it was not unusual to lead a brand and a company simultaneously. Some investors have said holding both jobs could create conflicts of interest.

“We made this decision very consciously — there is no time horizon in which it will be re-evaluated,” he said.

Though Porsche is targeting 80% electric vehicle production by 2030, Blume denied it was heading towards being a pure-play electric vehicle carmaker, a category that has traditionally done better on stock market lists.

“We have a very flexible strategy — we offer combustion engine cars, hybrids, and electric cars ... this mix is what defines Porsche,” he said.

The sports car brand is focused on solving the last remaining software issues created by delays in the collaboration with Volkswagen’s Cariad unit, setting out distinct strategies for Eastern and Western markets, Blume said.

“I would not rule out that we would have technology that first arrives in the Chinese market and is then rolled out in other markets,” he said.

Reuters