Latest news with #PorscheSE
Time of India
3 days ago
- Automotive
- Time of India
VW shareholder Porsche SE eyes higher defence exposure as auto sector flails
Volkswagen 's largest shareholder, holding firm Porsche SE , said on Wednesday that it planned to deepen its involvement in the defence sector, while reaffirming its core focus on cars and industrial technology. The move aligns with a broader trend among German auto and car parts makers. Companies like Volkswagen, Daimler Truck and Schaeffler have been exploring the defence industry as a potential growth avenue as Europe ramps up military spending . The holding vehicle of the Porsche and Piech families, which owns 32 per cent in Volkswagen and 12.5 per cent in luxury carmaker Porsche AG , said it intended to launch an investment platform in cooperation with other investors and partners, targeting emerging companies in the defence space. As part of this initiative, it would host a "Defense Day" event to connect German and European family offices with investment opportunities in the sector, it said without giving further details. Independently of the platform, the company is intensively exploring investment opportunities in areas such as satellite surveillance, reconnaissance and sensor systems, cybersecurity and logistics, it added. "The sector is hyped at the moment and likely to experience continued strong growth in the foreseeable future," said analyst Fabio Hoelscher from Warburg Research, though he noted no capital commitments had been made so far. Porsche SE outlined the investment plans after cutting its full-year earnings forecast, weighed down by a weaker half-year performance and an outlook cut at Volkswagen, its largest portfolio company whose performance is heavily reflected in the holding firm's results. While defence investments would counterbalance its cyclical automotive exposure to some extent, the sector is unlikely to become something as large and material for Porsche SE as its stakes in Volkswagen and Porsche AG in the short to medium term, Hoelscher said. Porsche first flagged its intention to expand investments into the defence sector in March.
Telegraph
3 days ago
- Automotive
- Telegraph
Billionaire Porsche family prepares for war with new defence fund
The German billionaire family behind Porsche is launching a new fund focused on investing in defence as it seeks to cash in on Europe's rearmament drive. Porsche SE – the powerful holding company run by the Porsche family – said it wanted to 'defend our values, democracy, and freedom' by pursuing a range of investments in the sector. The company, which has stakes in its eponymous luxury carmaker and Volkswagen, is expanding into weapons as it claimed we are 'in a world where freedom and security are no longer a given'. In particular, Porsche SE called out Russia's 'war of aggression against Ukraine, growing geopolitical tensions in Asia, and increasing cyberattacks on critical infrastructure'. To expand its fund, the Porsche family is planning to attract investors across Germany and Europe. The shift into defence is a symbolic moment for the Porsche family, which has generally avoided working with the defence sector since the 1960s. Ferdinand Porsche, the founder of the luxury marque Porsche AG and the engineer behind the bestselling Volkswagen Beetle, was a notable figure in Nazi Germany. He played key roles in tank design, turret production and even had a brief spell working on the V-2 rocket, as he became a friend of Adolf Hitler in the process. Ever since, his descendants have tried to move past this chapter in their history. However, Porsche SE said a renewed focus on defence in Europe had created an opportunity that it intended to capitalise on. Hans Dieter Pötsch, chairman of Porsche SE, said: 'On our way to becoming a diversified investment platform, we are closely monitoring the areas of defence capability, security and European resilience. 'With regard to portfolio investments, our aim is to increase our involvement in the defence and defence-related sectors while maintaining our core focus on mobility and industrial technology.' The launch of the defence fund, first mooted by the Porsche family in March, comes amid a major German rearmament push. Friedrich Merz, Germany's Chancellor, secured support in March for an easing of his country's long-standing 'debt brake', turning the taps on for €500bn (£432bn) of investment and ensuring that any defence spending above 1pc of GDP will be exempt from borrowing restrictions. Porsche SE said its investments would focus on technology-driven areas including satellite surveillance, reconnaissance and sensor systems, cybersecurity or logistics and supply systems. A company spokesman said: 'Our core holdings confront their past. Both Volkswagen AG and Porsche AG see dealing with their history as a permanent task and continue to dedicate themselves to this process. 'For this reason, we view responsibility not as a historical burden but as a mandate for the present. 'Any investments by Porsche SE in defence and security infrastructure contribute to strengthening Germany and Europe. We take our historical responsibility seriously and carefully review our investments.' The investment fund comes amid a surge in the value of defence stocks since the turn of the year. German defence giant Rheinmetall, which is Europe's biggest producer of ammunition, has risen by 161pc. FTSE 100 nuclear submarine contractor Babcock has also seen its shares soar by 95pc over the same period, while BAE Systems has climbed 52pc.
Reuters
4 days ago
- Automotive
- Reuters
VW shareholder Porsche SE eyes higher defence exposure as auto sector flails
Aug 13 (Reuters) - Volkswagen's largest shareholder, holding firm Porsche SE (PSHG_p.DE), opens new tab, said on Wednesday that it planned to deepen its involvement in the defence sector, while reaffirming its core focus on cars and industrial technology. The move aligns with a broader trend among German auto and car parts makers. Companies like Volkswagen, Daimler Truck ( opens new tab and Schaeffler ( opens new tab have been exploring the defence industry as a potential growth avenue as Europe ramps up military spending. The holding vehicle of the Porsche and Piech families, which owns 32% in Volkswagen and 12.5% in luxury carmaker Porsche AG (P911_p.DE), opens new tab, said it intended to launch an investment platform in cooperation with other investors and partners, targeting emerging companies in the defence space. As part of this initiative, it would host a "Defense Day" event to connect German and European family offices with investment opportunities in the sector, it said without giving further details. Independently of the platform, the company is intensively exploring investment opportunities in areas such as satellite surveillance, reconnaissance and sensor systems, cybersecurity and logistics, it added. "The sector is hyped at the moment and likely to experience continued strong growth in the foreseeable future," said analyst Fabio Hoelscher from Warburg Research, though he noted no capital commitments had been made so far. Porsche SE outlined the investment plans after cutting its full-year earnings forecast, weighed down by a weaker half-year performance and an outlook cut at Volkswagen, its largest portfolio company whose performance is heavily reflected in the holding firm's results. While defence investments would counterbalance its cyclical automotive exposure to some extent, the sector is unlikely to become something as large and material for Porsche SE as its stakes in Volkswagen and Porsche AG in the short to medium term, Hoelscher said. Porsche first flagged its intention to expand investments into the defence sector in March. ($1 = 0.8561 euros)
Hindustan Times
4 days ago
- Automotive
- Hindustan Times
Porsche billionaire owners forming platform to invest in defense startups
Porsche AG and Volkswagen AG's owners are setting up a fund to make defense-industry investments, hoping to ride a surge in European military spending. Ferdinand Porsche, the late founder of the sports-car brand, helped develop tanks for Nazi Germany.(Bloomberg) Porsche Automobil Holding SE, the holding company of the Porsche-Piëch billionaire owner family, said Wednesday it's forming a platform with partners it didn't name to invest in defense startups. The company is dropping a previous requirement that targets need to have not just military but also civilian applications. 'Our aim is to increase our involvement in the defense and defense-related sectors while maintaining our core focus on mobility and industrial technology,' Chairman Hans Dieter Pötsch said. The company also lowered its earnings guidance due to weakness in the auto industry. Tapping into new sectors may prove lucrative as Europe prepares to unlock hundreds of billions of euros in defense and infrastructure expenditures. Porsche SE announced in March it was considering a third long-term anchor investment in defense or infrastructure, separate from its holdings in VW and Porsche. Independent of the fund, Porsche SE said it's 'intensively examining' possible defense investments, with a focus on areas such as satellite surveillance, reconnaissance and sensor systems, cybersecurity or logistics and supply systems. The family's automotive empire has a long history of civil-military activities. Volkswagen operates a joint venture with Rheinmetall AG to make military vehicles, and Porsche SE last year made a double-digit million-euro investment in Munich-based drone manufacturer Quantum Systems. Ferdinand Porsche, the late founder of the sports-car brand, helped develop tanks for Nazi Germany. He designed the Beetle, used as a basis for military vehicles Volkswagen produced during World War II. The automaker later manufactured the Volkswagen Type 181, also called The Thing, for the West German Army and then for civilian customers in the UK and the US. Ferdinand's descendants — including his grandsons Ferdinand Alexander Porsche, who designed the 911, and Ferdinand Piëch, a former Volkswagen CEO — formed the basis of the owner family. Separately on Wednesday, Porsche SE cut its earnings outlook, citing lower profit expectations at Porsche and Volkswagen. The company now expects an adjusted group result after tax of at least €1.6 billion ($1.9 billion), from a minimum of €2.4 billion previously.
TimesLIVE
4 days ago
- Automotive
- TimesLIVE
Porsche SE cuts outlook, plans bigger push into defence
Holding company Porsche SE, Volkswagen's largest shareholder, cut its full-year profit forecast on Wednesday, weighed down by the German carmaker's weak first-half performance, while reiterating its plans to invest in the defence sector. Why it's important US tariffs have dealt a heavy blow to global carmakers, forcing them to book billions of dollars in losses, issue profit warnings, slash forecasts and raise prices. Though the EU has reached a trade deal that brought US tariffs on EU-made cars down to 15% from the previously imposed 25%, some analysts remain cautious as the duty is far higher than the 2.5% rate before US President Donald Trump launched his trade offensive. German car and car parts makers are meanwhile exploring the defence sector as a potential growth avenue, as Europe ramps up military spending. Key quotes 'Against the backdrop of a changing geopolitical situation and growing security policy requirements, Porsche SE sees considerable development potential in the defence and security sector and intends to capitalise on this,' the company said in a statement. 'With regard to portfolio investments, our aim is to increase our involvement in the defence and defence-related sectors while maintaining our core focus on mobility and industrial technology,' chairperson Hans Dieter Poetsch said. By the numbers Porsche SE expects the adjusted group result after tax to land between €1.6bn (R32,860,000,000) and €3.6bn (R74,005,200,000) in 2025, compared with €2.4bn (R49,349,280,000) to €4.4bn (R90,469,676,000) anticipated earlier. It reported an adjusted net profit of €1.1bn (R22,617,419,000) for the first half of the year, down by nearly a half from last year's €2.1bn (R43,178,709,000). Context Porsche SE, controlled by the Porsche and Piech families, is highly exposed to Volkswagen's performance through its nearly 32% stake, which influences its valuation, earnings and financial guidance. It also owns 12.5% of luxury carmaker Porsche AG, with much of the rest held by the Volkswagen Group. For full-year 2024, Porsche SE had disclosed impairments of €19.9bn (R409,169,671,000) on VW and €3.4bn (R69,899,240,000) on Porsche AG.
