PORSCHE
| Dr Ing. h.c. F. Porsche AG | |
 | |
| Type | Public (Xetra: POR3) (FWB: POR3) |
|---|---|
| Founded | 1931 by Ferdinand Porsche and Ferry Porsche |
| Headquarters |  Stuttgart, Baden-Württemberg, Germany |
| Key people | Dr. Wendelin Wiedeking, CEO and President |
| Industry | Automotive |
| Products | Automobiles |
| Revenue | €7.273 billion (2006), €6.57 billion (2005) |
| Employees | 11,910 (2005) |
| Website | www.porsche.com |
The first Porsche, the Porsche 64 of 1938, used many components from the Volkswagen Beetle. The second Porsche model and first production automobile, the Porsche 356 sports car of 1948, was built initially in Gmünd, Austria, the location to which the company was evacuated during war times, but after building forty-nine cars the company relocated to Zuffenhausen. Many regard the 356 as the first Porsche simply because it was the first model sold by the fledgling company.
Ferdinand Porsche, pictured to the left, worked with his son, Ferry Porsche, in designing the 356. Not long afterwards, on January 30, 1951, Ferdinand Porsche died from complications following a stroke.
The 356 automobile used components from the Beetle including its engine, gearbox, and suspension. The 356, however, had several evolutionary stages, A, B, and C, while in production and many VW parts were replaced by Porsche-made parts. The last 356s were powered by entirely Porsche-designed engines. The sleek bodywork was designed by Erwin Komenda who also had designed the body of the Beetle. Porsche's signature designs have, from the beginning, featured air-cooled rear-engine configurations (like the Beetle), rare for other car manufacturers, but producing automobiles that are very well balanced.
In 1963, after some success in motor-racing, namely with the Porsche 550 Spyder, the company launched the Porsche 911 another air-cooled, rear-engined sports car, this time with a 6-cylinder "boxer" engine. The team to lay out the body shell design was led by Ferry Porsche's eldest son, Ferdinand Alexander Porsche (F. A.). The design phase for the 911 caused internal problems with Erwin Komenda who led the body design department until then. F. A. Porsche complained Komenda made changes to the design not being approved by him. Company leader Ferry Porsche took his son's drawings to neighbouring body shell manufacturer Reuter bringing the design to the 1963 state. Reuter's workshop was later acquired by Porsche (so-called Werk II). Afterward Reuter became a seat manufacturer, today known as Keiper-Recaro.
The design group gave sequential numbers to every project (356, 550, etc) but the designated 901 nomenclature contravened Peugot's commercial rights on all 'x0x' names, so it was adjusted to 911. Racing models adhered to the "correct" numbering sequence: 904 906, 908. The 911 has become Porsche's most well-known model, successful on the race-track, in rallies, and in terms of sales. Far more than any other model, the Porsche brand is defined by the 911. It remains in production; however, after several generations of revision, current-model 911s share only the basic mechanical concept of a rear-engined, six-cylinder coupe, and basic styling cues with the original car. A cost-reduced model with the same body, but 356-derived running gear (including its four-cylinder engine), was sold as the 912.
In 1972 the company's legal form was changed from limited partnership to private limited company (German AG), because Ferry Porsche and his sister, Louise Piëch, felt their generation members did not team up well. This led to the foundation of an executive board whose members came from outside the Porsche family, and a supervisory board consisting mostly of family members. With this change, no family members were in operational charge of the company. F. A. Porsche founded his own design company, Porsche Design, which is renowned for exclusive sunglasses, watches, furniture, and many other luxury articles. Ferdinand Piëch, who was responsible for mechanical development of Porsche's serial and racing cars, formed his own engineering bureau and developed a 5-cylinder-inline diesel engine for Mercedes-Benz. A short time later he moved to Audi and pursued his career through the entire company, up to and including, the Volkswagen Group boards.
The first CEO of Porsche AG was Dr. Ernst Fuhrmann who had been working in Porsche's engine development. Fuhrmann was responsible for the so-called Fuhrmann-engine used in the 356 Carrera models, as well as the 550 Spyder, having four over-head camshafts instead of a central camshaft as in the Volkswagen-derived serial engines. He planned to cease the 911 during the 70s and replace it with the V8-front engined grand sportswagon 928. As we know today the 911 outlived the 928 by far. Fuhrmann was replaced in the early 80s by Peter W. Schutz, an American manager and self-proclaimed 911 aficionado. He was replaced in 1988 by the former manager of German computer company Nixdorf Computer AG, Arno Bohn, who made some costly miscalculations that led to his dismissal soon after, along with that of the development director, Dr. Ulrich Bez, who was formerly responsible for BMW's Z1 model and today is CEO of Aston Martin.
In 1990, Porsche drew up a memorandum of understanding with Toyota to learn and benefit from Japanese production methods. Currently Toyota is assisting Porsche with hybrid technology, rumored to be making its way into a Hybrid Cayenne SUV.
Following the dismissal of Bohn, an interim CEO was appointed, longtime Porsche employee, Heinz Branitzki, who served in that position until Dr. Wendelin Wiedeking became CEO in 1993. Wiedeking took over the chairmanship of the board at a time when Porsche appeared vulnerable to a takeover by a larger company. During his long tenure, Wiedeking has transformed Porsche into a very efficient and profitable company.
Ferdinand Porsche's grandson, Ferdinand Piëch, was chairman and CEO of the Volkswagen Group from 1993 to 2002. Today he is chairman of the supervisory board. With 12.8 per cent of the Porsche voting shares, he also remains the second largest individual shareholder of Porsche AG after his cousin, F. A. Porsche, (13.6 per cent).
Porsche's 2002 introduction of the Cayenne also marked the unveiling of a new production facility in Leipzig, Saxony, which once accounted for nearly half of Porsche's annual output. The Cayenne Turbo S has the second most powerful production engine in Porsche's history, with the most powerful belonging to the Carrera GT.
In 2004, production of the 605 horsepower Carrera GT commenced in Leipzig, and at EUR 450,000 ($440,000 in the United States) it was the most expensive production model Porsche ever built.
As of 2005, the extended Porsche and Piech families controlled all of Porsche AG's voting shares. In early October 2005 the company announced acquisition of an 18.53% stake in Volkswagen AG and disclosed intentions to acquire additional VW shares in the future. As of June 2006, the Porsche AG stake in Volkswagen had risen to 25.1%, giving Porsche a blocking minority, whereby Porsche can veto large corporate decisions undertaken by VW.
In mid-2006, after years of the Boxster (and later the Cayenne) as the dominant Porsche in North America, the 911 regained its position as Porsche's backbone in the region. The Cayenne and 911 have cycled as the top-selling model since. In Germany the 911 clearly outsells the Boxster/Cayman and Cayenne. [4]
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