Porsche is preparing to oust Chief Financial Officer Lutz Meschke as the automaker struggles to boost flagging earnings and reverse weak sales in China.

Porsche’s supervisory board has authorized discussions with Meschke, 58, and sales head Detlev von Platen, 61, over an early termination of their contracts, the automaker said in a statement on Feb. 1.

Porsche did not say why it is seeking the early contract terminations.

Meschke and von Platen are being held to account for Porsche’s poor commercial, financial and stock price performance since spring 2023, analysts at Bernstein wrote in a note to clients.

Porsche ‘s global vehicle sales fell 3 percent to 310,718 in 2024. Deliveries in China dropped 28 percent.

Automakers have been hit hard by intensifying competition in China from local manufacturers led by BYD, as well as reduced electric-vehicle subsidies in Europe.