Porsche Buys Into Software Company for New Vehicle Electronics Architecture

As cars become increasingly complex and connected, keeping the software that runs them up to date with the latest developments is key for future market success. Understanding that, more and more carmakers are investing in the tools required for that to happen.
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Photo: Porsche
Since creating new departments from scratch to handle software development is both time and money consuming, most car companies have decided to place their bet on third-party entities.

This week, German carmaker Porsche announced it will acquire a majority stake in German software developer Cetitec, as a means to bring to the market new electronics solutions for the cars it is building.

Cetitec and Porsche are no strangers, as the two are already involved in several joint projects. Those projects include the creation of a new electronics architecture, backed by the Volkswagen Group, which will be used on its vehicles starting 2022.

Porsche did not specify what cars will be based on the new architecture, but it’s likely they will be, at least at first, electric models, one that is already in development.

Michael Steiner, a Porsche executive in charge with research and development, says that the tie-up with Cetitec will even allow future Porsche owners to update their cars just as they do their phones today.

“In the future, our customers will expect the kind of software updates for their car that they’re familiar with today from their smartphone,” he said.

“The ability to bring new functions and services to the market quickly will be the dominant competitive factor in the future. We need an up-to-date software architectures and suitable solutions for this. That’s what makes Cetitec the right partner for us.”

The German carmaker did not disclose the size of its investment in Cetitec, and says it is now awaiting approval for the deal from the German Federal Cartel Office.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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