Porsche doubles down on 'digital transformation'

The company will establish Porsche Digital satellite divisions in Silicon Valley, Israel and Asia.

Porsche has promised to double down on its "digital transformation," aiming to become the leading provider of digital mobility services in the premium automotive segment.

The company last year established Porsche Digital GmbH, a new business unit tasked with identifying and assessing emerging trends that could affect the industry. Going forward, complementary sites will be established in Silicon Valley, Israel and Asia.

"Porsche will become a platform provider as well as a mobility provider," said Porsche CFO Lutz Meschke in an earnings presentation. "This will enable us to branch out beyond the boundaries of the automotive sector. We must not lose sight of Porsche customers when they shut the car door. Instead, we must accompany them in the rest of their life too."

The German sports car maker will also 'digitalize' its retail experience, both online and in the showroom. Many of the planned services will require lots of customer data, but without violating owners' 'data sovereignty.'

"If the sensors on my Panamera or 911 identify black ice on the road, naturally I am happy to provide this data to other road users in the area, because, in return, I will receive similar safety-related information from other drivers," Meschke added. "On the other hand, I don't want personalised advertising to appear on my display every time I drive past a restaurant."

The company wants to achieve double-digit growth of sales revenue through digital services, requiring a significant portion of research and development resources going forward. The strategy is expected to include investments in startups or other third-party companies, or simply direct collaboration.

Unconfirmed reports suggest Porsche is also waging an internal battle with Audi to lead Volkswagen Group's electrification push, sparring over funding allocations for EV development projects.

Read more!