As the automotive industry continues to put a bigger importance on digitalisation, Porsche is taking it a step further by actually creating a subsidiary called Porsche Digital GmbH. The new company, which will be based in Ludwigsburg, Germany, is being created with the purpose of making Porsche the preeminent provider of digital mobility solutions in the “premium automotive segment.”

Thilo Kozlowski will assume the role of managing director for Porsche Digital and he will be tasked with overseeing the growth of Porsche Digital. It’s still unclear on what specific projects the new company will work on, but having Kozlowski, who is known to be a savant in the automotive, Internet, and technology industries, should put Porsche Digital in a good position to, as Porsche says, “promote long-term partnerships” with other companies that can help foster relationships and build an ecosystem grounded on digital mobility solutions. Another part of the Porsche Digital initiative is to provide funds to start-up companies that Porsche believes has the potential to grow into long-term collaborations.

In other words, Porsche Digital is looking to create a network of of tech-oriented programs through Porsche Digital, one that can help lay the groundwork towards strengthening the German automaker’s own digital mobility solutions. It’s the kind of approach that wouldn’t have made sense a few years ago, but with the way technology has evolved in the auto industry, it’s a little surprising that other companies aren’t taking a similar approach as Porsche is by creating Porsche Digital GmbH.

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Why it matters

There’s a lot to digest here but in the simplest terms, Porsche Digital is going to be a subsidiary under Porsche North America that will focus all of its attention in turning Porsche into the go-to-company for digital mobility solutions in its segment. It’s a smart move for Porsche because it can set itself up as a market leader in this particular segment. We all know how important mobility and digitalization are in the auto industry these days, and if the German automaker can corner this market and establish itself as a leader in digital technologies, it’s going to have a huge advantage over its rivals.

It’s also a good idea that Porsche Digital is emphasizing early on that it’s a company that will not only work on technical and technological innovations, but it also won’t hesitate to seek out partners in areas where it’s not proficient. This kind of strategy should bode well for Porsche as it can establish relationships with technological experts in other fields, and if the opportunity presents itself for future collaborations, Porsche Digital can tap into these relationships to help with its own projects.

Give Porsche credit for setting it up properly too. It tapped a leader in Koslowoski who cut his teeth in the auto and tech segments. It also set up a network of offices that include its headquarters in Germany and affiliate offices in Berlin, Silicon Valley, and China. That tells you that Porsche wants to tap into the global market in its quest to be a leader in digital mobility.

It’s an ambitious goal, but it also has the potential to be one of those decisions that could shape the German automaker’s future, both in the short and long term.