Porsche, MHP and Munich Re found a joint venture
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.
“There’s great market demand for bespoke products. The challenge is to manufacture small batches profitably,” says Lutz Meschke, Deputy Chairman of the Executive Board at Porsche AG and Board Member responsible for Finance and IT. “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.”
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.
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the capital investment company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake through to the 2017 Atlantic hurricane season and to the California wildfires in 2018. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies, cyberattacks, or pandemics. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.
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