PORSCHE, MHP and MUNICH Re found a joint venture

21 January 2020 — Andrei Victor
PORSCHE, MHP - the sports-car manufacturer's subsidiary for management and IT consulting - and reinsurer MUNICH Re plan to form a joint venture. In fact, the three partners have already signed an agreement.

The alliance "FlexFactory: Digital Factory Performance" will aim to offer digital and flexible production strategies as well as innovative software solutions that make it highly cost-effective to produce even the smallest of batches.

Since the end of 2017, MHP and MUNICH Re have been exploring many different potential solutions for making production more versatile and digital, while minimising technological and financial risks. The PORSCHE Group and MUNICH Re each has a 50% stake in the nascent joint venture. The founding of this joint venture is subject to authorisation by regulatory agencies.

Lutz MESCHKE, Deputy Chairman of the Executive Board at PORSCHE AG and Board Member responsible for Finance and IT, stated:

"There's great market demand for bespoke products. The challenge is to manufacture small batches profitably. That's why PORSCHE, MUNICH Re and MHP see great potential in pooling our areas of expertise from different industries, combining MUNICH Re's risk-management expertise with PORSCHE's software skills and production know-how."

Torsten JEWORREK, Member of Munich Re's Board of Management, comments on the collective objective:

"For us, this joint venture is all about developing innovative production strategies and services that add up to a comprehensive solution, which we can then market as a complete and tailored package. In turn, customers will quickly reap strategic benefits and genuine added value through the pooled competencies of our companies."

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