Porsche to replace its chief executive in China following major sales slump

Frankfurt: German luxury sportscar maker Porsche AG will replace the chief executive of its China business, it said on Saturday, a move that follows a major drop in sales in the world's largest automotive market.

Alexander Pollich will become Porsche China CEO on September 1, 2024, at the earliest, the company said, replacing Michael Kirsch, who will move to another unspecified role within the company.

With 57-year old Pollich, Porsche's China business will be led by an "internationally experienced sales expert" who has been with the company for more than 23 years, most recently as chairman of the executive board of Porsche Deutschland GmbH, the carmaker said.

Porsche, which is majority-owned by Volkswagen, suffered a 33 per cent drop in China sales during the first half, it said earlier this month.

China accounted for nearly 20 per cent of Porsche's global deliveries, and the group's shares have been under pressure as investors are concerned about growing trade tensions with China, a market where Porsche solely relies on imports.

Porsche said Pollich's main task was to implement a value-oriented growth strategy for China: "Beyond this, his focus will be on an even more intensive collaboration with the local dealer partners as well as the further optimisation of the internal processes and structures."