Porsche plans more deals to add electric, digital technology

Porsche plans more deals to add electric, digital technology
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(May 7): Porsche AG plans to buy stakes in more companies this year to broaden the electric-vehicle offerings and digital services that are focal points for the future.

The German sports-car maker is continuing to “pick up the pace on investments” in new technologies and will make “a few announcements this year,” Chief Financial Officer Lutz Meschke said in an emailed statement to Bloomberg News.

Porsche’s technological edge and financial muscle is vital to parent Volkswagen AG’s shift toward electric vehicles. Porsche raised its stake in Croatian electric supercar maker Rimac two months ago and is in talks with battery specialists including Germany’s Custom Cells GmbH to explore options for high-performance cells tailored for sports cars.

Porsche and Audi remained VW group’s key divisions in the first quarter, accounting for just over half of the operating profit for Europe’s largest automaker. Sales of Porsche’s Taycan electric car almost matched deliveries of the iconic 911 sports car in the first three months.

Porsche’s operating profit more than doubled to 1.2 billion euros ($1.4 billion). Revenue rose 28% to 7.7 billion euros for a 16.2% operating margin, making Porsche one of the industry’s most profitable manufacturers.

Meschke said he’s “optimistic” for a record operating result this year, unless the global chip shortage causes deeper disruptions in coming months.