Porsche’s new ​CEO appealed to shareholders for patience on Tuesday, promising detailed turnaround measures later this ‌year as investors press the sports car maker to reverse a slump in profit margins and revive sales in China.

CEO Michael Leiters, brought in at the start of the year to oversee a sweeping overhaul of the Volkswagen ​subsidiary, promised to lay out concrete steps at a capital markets day later on October ​7.

Many investors, however, demanded urgent action after a disastrous 2025, during which Porsche’s ⁠decline in China accelerated and its operating margin collapsed to almost 1 per cent.

“Developments in China, in particular, ​make it clear that Porsche’s business model is no longer viable in its current form,” Hendrik ​Schmidt of shareholder DWS said.

CONCERNS OVER SOFTWARE AND MODEL LINEUP

Shares of Porsche, long synonymous with its 911 rear-engine sports cars, have roughly halved since their 2022 listing. During that time, China has turned from a money spinner for ​the company into its worst-performing market, with sales falling by 26 per cent in 2025.

Leiters’ plan to shore ​up margins involves a stronger focus on high-end models and sweeping cost cuts, in addition to 3,900 job ‌cuts already ⁠agreed with unions.

German automotive industry analyst Ferdinand Dudenhoeffer said early indications of Leiters’ strategy showed a typical approach to restructuring. “In the mid- to long-term, it is not clear where the journey is going,” he added.

Harald Klein of the DSW association, representing smaller investors, said Leiters failed to mention software ​and autonomous driving technology – ​key to winning back ⁠tech-focussed customers in China.

“It’s not just about brand image, quality or engineering expertise, which Porsche no doubt has. In China, massive investments must be ​made in the software user experience and new business models,” Klein said.

Porsche’s ​popular 911 ⁠and the upcoming all-electric Cayenne SUV will play a key role in its future model lineup under Leiters’ strategy.

But Dudenhoeffer questioned whether this would be enough. “The Cayenne will certainly face its own test in China ⁠when ​it comes to value for money,” he said.

Porsche’s business in ​the world’s largest auto market was buoyed for years by strong demand for its premium SUVs. More recently, however, local brands, ​such as Xiaomi (1810.HK), have emerged offering tech-laden SUVs at lower prices.