We all know the Porsche brand because of its iconic 911 sports model. But how many actually know that just two decades ago it was on the brink of collapse?
There are no hints towards that considering that Porsche AG brings in 2.6 billion euros (2.05 billion British pounds) in profits to its parent – Volkswagen AG. But the truth is that the German sports car manufacturer was an inch close to insolvency because of its most well known product. The 911 was the single lineup for the automaker and the management team managed a historic turnaround through careful steps – the introduction of the smaller Boxster model and then the unveiling of the brand’s SUV – the Cayenne.
And the return to stardom was so fast and glorious that today’s company bosses turn to the consultancy arm of the brand that leaves almost all automakers jealous when it comes to its industry-leading profit margins. British Airways, German software company SAP, healthcare firm Fresenius Medical Care and Swiss bank UBS are among the many business clients advised by the Porsche Consulting team (of over 360 people). They drive their expertise from the wide experience of a company that in 1993 was selling just 14,000 units of the 911 model (and nothing else) and has now grown to 162,000 vehicles (in 2013) and profit margins of 17%.