(Yicai Global) Oct. 9 -- Volkswagen Group's [FWB:VOW] Porsche AG will work with Panasonic Corp. [TYO:6752] to jointly develop high-end household appliances for the Chinese market, starting with washing machines, Securities Daily reported today.

The two parties have chosen to combine their efforts in the sector in face of increasingly fierce competition in the market.

Panasonic has looked to implement a strategy to transform itself into a high-end brand since last year. Cooperation with Porsche is seen as a move to expedite this process and raise its brand image.

"Cooperation with Porsche is a significant move for Panasonic as part of efforts to enhance brand value," said Liu Jianguo, general manager at Hangzhou Panasonic Household Appliance Co.

The first joint product will debut early in 2018, an industry insider said.