Porsche SE Is Analyzing Further Automotive Investment Targets

  By Ilka Kopplin and Friedrich Geiger 
 

FRANKFURT--Porsche Automobil Holding SE (PAH3.XE) said Tuesday it aims to acquire stakes in mid-sized automotive companies and is analyzing possible targets while Volkswagen AG (VOW.XE) will remain the core investment.

The company, which owns slightly more than half of Volkswagen's ordinary shares, aims for highly profitable and sustainable investments in medium-sized companies along the automotive value chain, Chief Executive Martin Winterkorn said.

Porsche SE has net liquidity of around 2.6 billion euros ($3.4 billion) after it completed the sale of its sports-car making business to Volkswagen last year and used part of the proceeds to pay back virtually all of its debt.

Acquisition targets could be in a field ranging from basic technologies for the development and production process to vehicle and mobility-related services, said Mr. Winterkorn, who is also the chief executive of Volkswagen. Porsche is eying the industry's large trends, such as sustainability, preservation of resources and increasing networking.

"It's for example about new drive concepts and materials, as well as new technologies for car safety and connectivity," he said.

This year and next year promise a pleasing development for Porsche SE, according to the CEO. He predicted an after-tax profit in the low single-digit million euro range for both years.

Write to Friedrich Geiger at [e-mail]

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