Porsche SE, the parent company of Porsche and Volkswagen, is shifting its strategic focus amid challenges in the global automotive market by establishing a fund dedicated to defense-industry investments. This move reflects an effort to capitalize on the surge in European military spending. The investment fund, which Porsche SE is setting up alongside Deutsche Telekom, aims to raise €500 million to target defense technology companies, including sectors such as satellites and cybersecurity. This strategic diversification marks a departure from Porsche SE's previous requirement that investments have dual military-civilian applications, signaling a stronger commitment to the defense sector. The initiative underscores Porsche SE's intent to leverage growth opportunities in security-focused markets as it lowers its profit forecasts in the automotive business.