Core Insights - The traditional R&D model is inadequate for the rapidly changing market demands, prompting Porsche to establish its first strategic overseas R&D center in China [2] - The new R&D center integrates R&D, procurement, and quality control, significantly reducing development cycles from years to months, enhancing responsiveness to market needs [2][3] - Porsche's sales in China have faced significant pressure, with a 26% year-on-year decline in the first three quarters of 2023, highlighting the urgency for localized strategies [2][3] Group 1 - Porsche's new R&D center in China is a response to the fast-growing Chinese electric vehicle market and the rise of domestic brands that are capturing luxury car market share [2] - The center's establishment is part of a broader trend among luxury car manufacturers to localize R&D to shorten decision-making cycles and better adapt to local market demands [3] - The collaboration between Porsche's local team and its German headquarters aims to ensure that products are tailored to meet the specific needs of the Chinese market [3] Group 2 - The R&D center's three main functions—R&D, procurement, and quality—work in synergy to address the unique demands of the Chinese market [3] - Quality control is emphasized throughout the entire process, ensuring that the final products meet customer experience expectations [3] - Porsche is selective in choosing local partners based on quality standards and innovation capabilities, adhering to a "small but precise" product development philosophy [4]