One of Porsche’s most successful technical concepts is the mid-engine, which is used in both production and race cars. More than 50 years ago, this engine layout was used in the 914. In the 1950s, it was chosen for the 550 and 718 race cars, and, last but not least, the first Porsche 356 “No. 1” Roadster, the car that defined the birth of the Porsche brand, already featured the mid-engine in 1948. For 25 years now, the mid-engine has also firmly established itself in the Porsche model range in the Porsche Boxster.
The concept of a new management generation: out of the crisis with a brilliant idea
The early 1990s were a very difficult period for Porsche AG economically. Declining sales figures – also due to the loss in value of the US dollar – in combination with the excessively high production costs of the four technically very independent product lines, the 911, 944 and 968, as well as the 928 meant that the sports car manufacturer was in serious trouble, and even made it a takeover target for large car manufacturers. The introduction of the completely newly developed Porsche Boxster in 1996 marked a decisive turning point in the company’s fortunes. The agile mid-engine roadster did not just open up a new market segment for Porsche, but also attracted a significantly younger customer group with its concept and price positioning below the established 911.
But the concept for a two-seater roadster with mid-engine was only part of a new entrepreneurial strategy introduced in 1991 by a new generation of the management board. In addition to Wendelin Wiedeking, at that time still Member of the Executive for Production and Materials Management, and Dieter Laxy, Member of the Executive for Sales, Horst Marchart, Member of the Executive Board for Research and Development, is also involved in the realignment: “We did not believe that the four-seater Type 989 being developed at the time would rescue us from our difficult financial situation as the expected sales figures would be too low for the company and the dealer organisation, and the vehicle would also not allow any common parts with the 911 model series because it was an independent product line. The idea was to create an additional product line from the vehicle concept and components of a new 911. It was to be a two-seater with a front end close to that of the 911 to guarantee clear identification of the car as a Porsche. In addition, the new car should cost around 70,000 marks and also appeal to younger customers. My concept was accepted,” says Horst Marchart, remembering the presentation to the shareholders.
Marchart’s roadster concept made increased use of the common parts or carry-over parts (COP) principle. As a result, the Boxster in the first 986 generation shared the front end, doors and numerous other components with the 911 of the 996 generation, which was launched in 1997, just one year after the introduction of the Boxster. The logical consequence of this principle was significantly reduced production and inventory costs for both product lines. This was accompanied by rigorous cost management. Horst Marchart remembers: “We had set ourselves the goal of reducing costs throughout the whole company. We wanted to reduce the production costs for new cars by 30 percent, which was possible among others through a carry-over part concept for the assemblies. In order to realise this, we created development teams that were simultaneously responsible for both vehicles. Fictitious price targets were defined for the components in the Development and Purchasing departments in order to ensure that we would achieve the desired manufacturing costs.”