Porsche SE after losses: Automotive holding company considers returning to the defense business

After multi-billion losses last year in both its group and Volkswagen, the Porsche SE holding company is looking for new business directions. In particular, they are considering the possibility of returning to the production of weapons and defense equipment.

This was reported by Es&t, writes UNN.

Details

As a result of an unsuccessful year for the automotive industry, the stock-listed holding company Porsche SE, which owns 31.4% of Volkswagen shares and 25% of Porsche shares, is expected to announce net losses of EUR 20 billion. Accordingly, managers are pushing for tough austerity measures and looking for new business areas. In addition to infrastructure, entry into the arms business, which is actually a re-entry, is also being discussed.

Porsche is no newcomer to this business. From 1958, F. Porsche GmbH as general contractor developed a new standard tank called "Typ 814" for the young Bundeswehr. This project took into account the developments made during the World War, in which the Porsche design bureau participated, especially in the field of chassis.

In October 1963, the main battle tank was named "Leopard" and transferred to the army. Thus, Porsche became the general contractor for the creation of the Leopard tank for the Bundeswehr. Therefore, it is assumed that this experience can help the company successfully integrate into the modern arms market.

Porsche also tried to get a government order for the military vehicle "Type 597". It was an open-top SUV, also known as Kubelwagen. It was equipped with a four-cylinder air-cooled opposed engine from the civilian Porsche 356.

In military tests, Porsche lost to competitors - DKW Munga from the then Autounion (today Audi AG. But first of all, Porsche Holding SE is interested in corporate investments. Since 2024, the company owns a double-digit million stake in the drone development start-up Quantum-Systems. They are also used for military purposes.

The course of Russia's war against Ukraine illustrates the potential of autonomous unmanned systems. According to statements by the board of directors of Manager Magazine, there are currently about EUR 2 billion available for such investments.

Recall

NATO Secretary General Mark Rutte announced a record increase in defense spending. An increase in spending to 3-4% of GDP for European countries and Canada is also being discussed.