Connected Vehicle

Porsche and Volkswagen plans to invest in car-connectivity technology

Published: May 14, 2015 | Germany

Porsche Automobil Holding SE, the controlling shareholder of Volkswagen AG, plans to use its cash to invest in car-connectivity technology, part of a push to expand its portfolio beyond the German automaker.

Martin Winterkorn, chief executive officer of both VW and Porsche

Martin Winterkorn’s unusual position as head of both Volkswagen and its main shareholder stems from the companies’ aborted merger in 2009. Courtesy: Bloomberg

Porsche SE is looking to acquire technology that will allow cars to exchange data. The investment vehicle of the Porsche-Piech family will continue its careful approach after making only one investment in years of searching. When acquiring new investments, we continue to exercise exceptional diligence,” – Martin Winterkorn, chief executive officer of both VW and Porsche

Porsche SE has laid out a strategy to use its cash from Volkswagen dividend payments to expand in industries related to carmaking. This year, the company expects positive net liquidity of between 1.7 billion euros and 2.3 billion euros ($2.6 billion). So far, its only investment has been the 41 million-euro purchase of a 10 percent stake in traffic-information provider Inrix Inc. in 2014.

Source: Bloomberg

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