View Single Post
      07-31-2019, 11:59 AM   #109
heavyD^2
Major
heavyD^2's Avatar
Canada
1089
Rep
1,136
Posts

Drives: X3M Competition
Join Date: Apr 2018
Location: Calgary, Alberta Canada

iTrader: (0)

Quote:
Originally Posted by scrammer View Post
This is the reason Porsche is still around: PEG and the VW Group's 9 Brands

Porche Engineering Group (PEG), Porsche made its wide-ranging expertise in the development and production of vehicles available to clients from a variety of industries. PEG was considered Porsche's "secret weapon, enabling it to employ more engineers than if it worked alone, giving it an edge in product development.

The ability to scale and create synergies across a number of areas were two driving forces that led Porsche to secure its partnership with VW. As Wiedeking explained, electronics was one area of particular interest: "Electronics account for 30% to 35% of our development costs. Spreading this investment over 2 million cars instead of Porsche's 100,000 will make a big difference and the components will be cheaper." Furthermore, the capital intensity of R&D and required fixed assets in new technologies would be increasing, making it increasingly difficult for a premium-only OEM to survive unless operating in the context of a larger OEM.

Check out the entire article below...

https://mitsloan.mit.edu/LearningEdg...g-Porsche.aspx
There is a bit of spin there but I don't doubt there's plenty of benefits of sharing development costs. Still though hard to ignore the top selling Porsches today are basically Audi platform and engine. If selling their own version of an Audi SUV makes it viable for brand to continue to invest in and build 911's then it seems well worth it to me.
scrammer356.00