Porsche explores defence industry re-entry following multibillion-euro losses

Porsche SE Holding, which suffered significant losses in 2024, is now exploring new business sectors, including a potential re-entry into the defence industry, following substantial setbacks both within its own company and at Volkswagen.

The publicly traded firm, which holds a 31.4% stake in Volkswagen and a 25% stake in Porsche, reported a net loss of €20 billion last year, Caliber.Az reports via German media.

In response to these losses, executives are pushing for stringent cost-cutting measures while scouting for new opportunities. Infrastructure development is one such area under consideration, but a return to the defence sector is also on the table, a move that would mark a re-engagement with military contracts.

Porsche's history with the Bundeswehr (German Armed Forces) dates back to the 1950s, when the company developed the Leopard-1 main battle tank under the name "Typ 814" as a general contractor. The vehicle, which was officially introduced in October 1963, incorporated insights from World War II vehicle designs, particularly in the chassis area.

Additionally, Porsche attempted to secure a contract for the military’s "Kübelwagen" with its Type 597, though the contract ultimately went to Audi’s DKW Munga.

In a bid to expand into the defence sector once again, Porsche Holding has invested in military applications, such as drones. Since 2024, Porsche has acquired a minority stake in Quantum-Systems, a drone startup developing systems used in military operations, with autonomous drones gaining increasing attention in light of their role in the ongoing conflict in Ukraine.

According to statements from Porsche executives, the holding company currently has up to €2 billion in liquidity available for potential investments in military ventures. These investments could pave the way for Porsche’s renewed involvement in the defence industry, even if specific development contracts are not immediately forthcoming.

By Aghakazim Guliyev