Core Insights - The strategic cooperation agreement between the Shanghai Jiading District government and Porsche Engineering Technology Research (Shanghai) Co., Ltd. marks a significant milestone in Porsche's localization R&D strategy in China [1] - The Porsche China R&D center's first phase is set to be operational in the second half of this year, accommodating over 300 engineers and focusing on local market-oriented products and technology solutions [1][2] Group 1 - The collaboration will leverage policy support, talent attraction, and industrial resource synergy to assist Porsche in establishing and operating its R&D center in Jiading [1] - Porsche aims to enhance its R&D and digital capabilities in China to better meet local market demands [1] - The R&D center will be responsible for various research and development activities, including smart connected vehicle function validation, electric vehicle and high-voltage technology R&D and testing, and prototype and function testing [1] Group 2 - The R&D center will integrate Porsche's core entities in China and innovatively incorporate local procurement and quality assurance functions, creating a complete R&D chain [2] - This integration represents a significant upgrade in achieving "local R&D, local procurement, and local quality control" [2] - The first technical outcome from the R&D center will be a market-specific infotainment solution, planned to be launched in Porsche models by 2026 [2]

Core Viewpoint - Porsche is redefining its R&D strategy in the Chinese market through a strategic partnership with the local government to establish a research center focused on electric vehicles and smart connectivity technologies [1][3]. Group 1: R&D Strategy - A strategic cooperation agreement was signed between the Shanghai Jiading District government and Porsche Engineering Technology R&D (Shanghai) Co., aiming to support the establishment and operation of Porsche's R&D center in Jiading [1]. - The R&D center will focus on local product and technology solutions, including smart connected vehicle functionality, electric vehicle and high-voltage technology development, and prototype testing [3]. - The center is expected to accommodate over 300 engineers and will integrate local procurement and quality assurance functions to create a complete R&D chain [3]. Group 2: Market Performance - Porsche's sales and performance are under pressure, with a projected decline in sales return rate to 10%-12% by 2025 and an anticipated loss of €800 million (approximately 6.24 billion RMB) due to product line adjustments [4][5]. - In 2024, Porsche expects to deliver 310,700 vehicles, a 3% decrease year-on-year, with a significant drop in the Chinese market, where sales are projected to decline by 28% to approximately 56,900 units [5]. - The CEO of Porsche indicated that the Chinese market is undergoing structural adjustments, which will have a long-term impact on sales, and the company plans to optimize its dealer network by reducing the number of outlets to around 100 by 2027 [5].