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Nobody’s perfect — including Porsche. Despite that phrase appearing in their famous 1983 magazine advertisement, they managed to get damn-close to the perfect luxury business (even Bernard Arnault would be jealous!). Porsche is both quality AND quantity, owning the most prestigious brand in its market, while at the same time churning out almost half a million mass-market soccer mom/dad SUVs per year. And like any good luxury brand, it’s packed with enough juicy family drama and creeping takeovers to fill a Netflix series.
Yet, behind it all lies perhaps the darkest origin story we’ve ever told on Acquired. Not only was Porsche was started by Nazis, Adolf Hitler himself was deeply involved in its early fortunes. And, following WWII, the Allies simply looked past these facts and essentially bestowed a license to generate wealth on Porsche and its owners — setting the stage for them to become one of the top ~15 wealthiest families in the world today.
Joining us to explore it all is perhaps the very most-qualified person in the person in the world: the one & only Doug DeMuro. Not only is Doug the largest independent car reviewer on YouTube with millions of subscribers (we’re HUGE fans), he previously worked at Porsche corporate and owns a legendary Porsche Carrera GT — which served as the recording backdrop for this episode. Make sure you tune in to watch the video version! :)
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The podcast kicks off with the hosts discussing the unique strengths of Porsche as both a luxury brand and a mass-market player due to its dual strategy of producing high-end sports cars and popular SUVs. Despite its fame and recognition, the podcast highlights the dark parts of Porsche's history, including its origins linked to the Nazi regime.
The hosts delve into the history of Porsche, recounting significant milestones including its founding by Ferdinand Porsche, the production of the iconic 911, and the tumultuous times throughout the WWII era. The discussion also covers the shifts in luxury branding and how Porsche managed to carve its niche in the automotive industry amidst changing consumer preferences.
This section discusses the effects of WWII on Porsche, including how they were able to bounce back due to favorable conditions set by the post-war German government. The hosts reflect on how Porsche's involvement with the Nazi regime lingered in its branding narrative, affecting perceptions of the company in modern times.
Porsche's positioning during the oil crisis and the subsequent repositioning under new leadership in the late 1990s marks a shift towards SUVs with the Cayenne and the Boxster, setting the stage for higher profit margins through diversified offerings. The role of brand loyalty and enthusiasm around Porsche's cars is also discussed alongside its reputation for performance and reliability.
A significant part of the discussion focuses on the link between racing and consumer purchases. This relationship solidifies Porsche's brand prestige while also allowing them to resonate with sports car enthusiasts. Racing serves as both a showcase of performance and quality, reinforcing the brand's identity.
In the final sections, the hosts transition into a conversation about Porsche's current market status post-IPO, discussing its revenue growth and profitability within the Volkswagen group. They assess potential threats to its brand equity due to its SUV lines while emphasizing its enduring appeal and strong demand in the luxury market.
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