German luxury car manufacturer Porsche may start making tanks and weapons due to the problems of the German auto industry and the government's plans to increase defense spending, reports ESuT.

After a loss of 20 billion euros in 2024, the Porsche management claims that it needs to resort to tough economic measures and is seeking new domains of business. In particular, Porsche may invest up to 2 billion euros in defense projects and has already invested in the startup Quantum Systems, which is developing drones.

For the automaker, making military products would be almost a "return to its roots." The company, founded in 1931, was initially engaged in the production of various equipment for the German army during World War II.

Germany's export-oriented auto industry has suffered from the slowdown in China's economy. It has lost out also to competition from Chinese electric vehicle manufacturers. As a result, individual companies have begun to switch to military equipment production, as the German authorities plan to spend 200 billion euros on defense and have lifted the long-standing restrictions on borrowing state funds to that end.