World-renowned German automobile company Porsche SE is considering a return to the defense business after a long hiatus.
According to the German publication Esut, the holding company is looking for new areas of activity after billion-dollar losses in 2024 both in its own group and in Volkswagen.
Porsche Automobil Holding SE recorded a net loss of €20 billion last year. Therefore, Porsche SE, which owns 31.4% of Volkswagen and 25% of Porsche, is looking for new business directions. Thus, according to the publication, one of the expansion options may be a return to the defense industry, where the company already had experience in the past. Since 1958, the company Dr. Ing. hc F. Porsche GmbH has participated in the creation of a new tank for the Bundeswehr, in particular its chassis. When officially put into service in October 1963, the new battle tank was christened the Leopard and transferred to the troops.
Porsche also tried to get an order from the then young West Germany for the Porsche Type 597 SUV. In 1953, the German government announced a tender for the production of an SUV for the army. Porsche was interested in this tender and presented its prototype. Despite the fact that the Porsche was clearly superior to its competitors, the German armed forces chose the DKW Munga, which cost less.
Porsche SE is now choosing an investment approach instead of developing military equipment on its own. For example, in 2024 the company made a multi-million-euro investment in the German startup Quantum-Systems, which produces autonomous drones used for military purposes. The company reported that up to €2 billion has been allocated for such investments - this could be the first step towards a larger return of the famous German car company Porsche SE to the field of defense technologies.
Recall, recently, Volkswagen CEO Oliver Blume said that the carmaker is ready to support the development of defense capabilities in Europe. According to him, Volkswagen can consult other manufacturers on the development and support of military vehicles. And in March 2025, Rolls-Royce Power Systems AG reported that it is working on creating a new alternative engine for Leopard 2 tanks, which it will soon deliver to an “unnamed customer”. The new engine will be much lighter while maintaining the same characteristics and will require less space for installation.