Fully Charged: A Dialogue with Oliver Blume on Porsche's Strategy and Targets

In an industry synonymous with innovation and luxury, Porsche has consistently set the benchmark for excellence. Oliver Blume, Chairman of the Executive Board, sits at the helm of this transformative journey, steering the storied manufacturer into a future where tradition meets pioneering technology. In a candid interview, Blume reflects on Porsche's trajectory, emphasizing teamwork, strategic foresight, and a relentless pursuit of sustainable operations.

A Record of Team Success

Under Blume's leadership, Porsche has not only sustained its legacy but has also achieved record figures, doubling sales revenue and operating profit in recent years. "Success is always the result of teamwork. And we’re a strong team. We’ve managed to continue developing Porsche over the years and find new motivation time and again after all these years of success. At the centre of it all are our products, which combine our Porsche values with state-of-the-art technology. For us, it’s all about thrilling our customers and fulfilling their dreams with each and every car. Financial successes are the result of a successful strategy. We’ve managed to more than double our sales revenue and operating profit in recent years. But there are no coincidences in the automotive industry. Success takes planning. We have a consistent strategy with a concrete concept for implementation. For me, it’s important that we don’t rest on our laurels. As in motorsport, every race begins at the starting line. If I don’t refocus my efforts every time and have the drive to win, I won’t be the first to cross the finish line."

Strategic Planning at Its Core

When asked about the secret to Porsche's planning success, Blume reveals a methodical approach grounded in analysis, prioritization, and strategic decision-making. His leadership philosophy centers on providing teams with guidance and autonomy, fostering a culture where innovative ideas can flourish. "I don’t have a secret formula, but I do have a philosophy and method for managing the company. My aim is to apply these specifically to the conditions at hand and any questions that arise. It’s just like in sports. Experience can be helpful—and so can strategic preparation and structured implementation. Basically, my formula is this: first, analyze the situation with precision; second, prioritize topics and responsibilities; and third, make decisions strategically and with foresight—and implement these with a high degree of determination. I provide our teams with guardrails that offer guidance, but also the leeway they need to flourish, develop ideas, and operate in an entrepreneurial way. The key to success is everyone working for the benefit of the team, the company, and our customers. For me, it’s all about the right mindset and team spirit."

Navigating Transformation

The automotive sector is amidst its most significant upheaval, driven by digitalization, sustainability, and electric mobility. Blume views this transformation as a series of stages, each requiring pragmatism, ambitious yet achievable targets, and flexible strategies. Porsche's commitment to electric mobility is evidenced by the success of the Taycan and the eagerly anticipated all-electric Macan. "Transformation in the automotive sector, with the key issues being around digitalization, sustainability, and electric mobility, is the biggest upheaval we have seen in the history of our industry. It’s so much more than just changing technology, too: new organization and processes also play a key role. We’re talking about a period of more than 15 years, and we have about a third of that already behind us. There are some important things that still need to be done, such as increasing the efficiency of electric mobility, expanding renewable energies, establishing a comprehensive charging infrastructure, and decarbonizing the company. Different regions of the world will transform at different speeds, which our product strategy takes into account. We’re positioned to be flexible. Electric sports cars are a clear priority, but we’ll continue to offer combustion engine cars and hybrid drives throughout the period of transformation."

Celebrating Six Decades of Innovation with the Porsche 911

Oliver Blume, in reflecting on the illustrious history of the Porsche 911, underscores the model's role as a testament to Porsche's enduring innovative spirit and attention to detail. For 60 years, the 911 has not only captivated enthusiasts but has also served as a platform for pioneering automotive advancements. "Pioneering spirit is a common thread throughout the model’s entire history. Groundbreaking innovations have found their way from the racetrack to the 911 road car. One such example is the turbocharger, which was developed in the 1970s—first in the legendary Le Mans race car and then in the 911 Turbo production cars. The technology has continued to improve over time. Take for instance the variable turbine geometry, which ensures optimal flow for all operating modes and was integrated into the 911 in 2006. Another example is the Porsche dual clutch transmission (PDK), which proved its worth in racing and was then incorporated into the 911 model line in 2008. It’s just about impossible to imagine the 911 without it today. Or the sporty all-wheel drive, which helped the 959 win the Paris–Dakar Rally in 1986 and made its debut a short time later in the 911 Carrera."

Courage and Innovation

Launching the Taycan marked a courageous venture into electric mobility for Porsche. This bold move has paid dividends, with the Taycan achieving remarkable success and setting the stage for the next generation of electric sports cars. "At Porsche, we entered the field of electric mobility at the end of 2015, which was very early. At that time, the decision to develop the Taycan required a lot of courage. I remember my first Supervisory Board meeting as Porsche CEO as if it were yesterday. We were talking about billions in investment, which represented a new path for us. And more than just a few were skeptical whether it was the right path for Porsche. But when the factory opened its doors in fall 2019 and the global premiere was a huge hit, everyone realised that the Taycan would be a success. We had produced the 100,000th Taycan by the end of 2022, which was followed by more than 40,000 cars in 2023 alone—and that was the last cycle year of the first generation. And now the new Taycan is coming—and setting new technological benchmarks."

Defining Luxury and Sustainability

For Blume, luxury is synonymous with Porsche's combination of iconic design, unparalleled performance, and exclusivity. But beyond the tangible aspects of luxury, Porsche's identity is deeply rooted in sustainability. "It’s important to think about how Porsche defines luxury in general. We know that our customers fulfill their dreams with a Porsche. They benefit from the perfect combination of iconic legacy and sporty, state-of-the-art luxury. Our sports cars not only boast extraordinary design, quality, and technology, but also offer irresistible exclusivity and performance. In addition, we combine an outstanding product with a very personal experience and a brand that assumes responsibility in society. As far as I know, that’s unique throughout the luxury car segment."

"Sports cars form the core of our brand. It’s always about the right technical concept, product substance, performance, design, and quality. Customers choose a brand they identify with. Customers buy brands—and icons shape them. Iconic products like the 911. You can go on and on describing your new Porsche 911 to friends—full of emotion and enthusiasm. But you can also just look at it. For yourself. It’s at this moment that luxury becomes tangible. At Porsche, we stand behind our values, our identity. Porsche has always remained true to its roots. I can always see that a 911 is a 911, and compare it with the first one from 60 years ago. A Porsche is iconic and timeless. It’s so very recognisable."

"We think about climate protection as a whole, which is why we’ve opted for a double “E” solution: electromobility and complementary eFuels. Renewable, synthetic fuels allow combustion engines to operate potentially nearly carbon-neutral. We’re thinking in terms of solutions for existing cars. There are currently 1.3 billion cars with combustion engine on the road today, many of which are quite old. As an admixture in fuel, eFuels can reduce CO? emissions. Aviation and shipping also requires synthetic fuels. Our eFuels pilot facility in southern Chile has been producing synthetic fuel since the end of 2022. The system is designed for a maximum production capacity of 130,000 liters, with the fuel initially used for the Porsche Mobil 1 Supercup and other lighthouse projects.

Looking Ahead

As Porsche continues to navigate the future, Blume's vision is clear: to marry the brand's storied legacy with a commitment to innovation and sustainability. With groundbreaking projects like the optimized eFuels facility utilizing direct air capture technology, Porsche is not just preparing for the future but actively shaping it.

In an era where the automotive industry faces unprecedented challenges and opportunities, Porsche, under Oliver Blume's stewardship, remains a beacon of resilience, innovation, and unwavering commitment to excellence.