Porsche will close three subsidiaries as part of steps to respond to falling sales and weakening profitability, TechCrunch reported on Thursday.

Porsche will shut battery subsidiary Cellforce Group, electric bicycle drive system maker Porsche eBike Performance, and Cetitec, which has supplied networking software to Porsche and Volkswagen Group.

Cellforce Group is drawing the most attention among the three, TechCrunch reported.

Porsche had sought to develop and produce its own batteries through Cellforce Group to differentiate itself from rivals. But it withdrew its plan for in-house battery production in August last year and reorganised the unit into a research and development organisation, before deciding this time to shut it completely. Porsche now plans to pursue a "technology-open powertrain strategy" that sources batteries from external companies.

Michael Leiters (미하엘 라이터스), the CEO who took the helm at Porsche earlier this year, said, "We must focus on the core business," and added, "Painful decisions, including those involving subsidiaries, are inevitable."

Porsche's North America sales fell 11 percent in the first quarter this year, while China declined 21 percent and Europe dropped 18 percent. Porsche points to a sluggish transition to electric vehicles as the reason, but TechCrunch reported that poor results in China, where electric vehicles account for more than half the market, are raising questions about that claim.