Porsche 914
Posted by Chris Dykes
Rumors are flying that two of Germany’s legendary automobile manufacturers are engaged in talks of a buyout. The mass-market goliath and the small specialist have a history together, but corporate identities and jobs are at stake, and the direction these companies take will ripple through the industry. At the heart of it all lies the Porsche 914.
The 914? Yes, and the year is 1969.
While current headlines refer to Porsche’s ongoing efforts to buy a majority stake in Volkswagen — as of 2007 they own about 30% of VW’s stock and are still shopping — in 1969, a series of agreements, disputes, and the everlasting struggle for profit on the 914 project had journalists wondering if proletarian VW was about to merge with or take over the upscale Porsche. News got so speculative that Ferry Porsche issued a letter stating “Porsche remains Porsche!”
The companies had agreed in 1948 that Porsche would act as a design consultant to the larger VW, and of course Ferdinand Porsche had designed the Beetle, so when the 911 was introduced at a much higher price than the 912, Ferry Porsche had someone to call when he wanted to produce a lower-priced sports car. His friend Heinz Nordhoff was the Managing Director at VW, and Nordhoff, after his success with the Beetle, saw the need for VW to move upscale.
The two made a deal, part on paper and part gentleman’s agreement, whereby they would create a new sports car that could use a VW engine. The bodies would be supplied to Porsche at a reasonable price, and the company could then install its own engine.
Both men wanted something new — something that looked neither like a VW nor a Porsche — so the industrial design firm Gugelot was commissioned to pen the body. Gugelot was anxious to try their hand at a car, having been influential with their designs for Braun appliances, Kodak slide projectors, and Pfaff sewing machines. For inspiration they looked towards race cars and other manufacturers. Coopers had won Grand Prix events with a mid-engine layout, Ferrari recorded a win at Le Mans in a mid-engine car, and Lotus-Ford placed first in Indianapolis in 1965. Furthermore, at the 1967 Geneva Auto Show mid-engine designs debuted from Ferrari, Lamborghini, DeTomaso, Lotus, and Matra. And because the Ferrari used a Fiat engine and the Lotus a Renault, collaboration between makers seemed marketable.
Before the 914 debuted in 1969, Heinz Nordhoff died and Kurt Lotz assumed control of Volkswagen. The new director honored the written agreement made earlier with Porsche regarding the 914, but not the gentleman’s agreement with Ferry about making bodies available at a reasonable cost. Instead he made Porsche pay much more than they had anticipated for 914 shells, more even than they paid for 911 shells. Profit on the 914, which was supposed to be an entry-level Porsche, quickly became a problem. When the 914/4 with the VW engine arrived in the States, the price was $3,995. The 914/6 with the Porsche engine carried a price of $6,000, or about $400 less than a 911T.
Customers weren’t sure if they were getting a Porsche or a Volkswagen. In an attempt to solve this problem, the companies spun off new companies to market the cars, which in turn created more problems. In Germany Volkswagen-Porsche Vertriebsgesellschaft Gmbh handled sales. Thoughtfully, the official abbreviation became “VG”; however, the colloquial abbreviation became “VoPo,” which was also the nickname given to the East German border guards. German 914s bore a VW-Porsche badge.
In America, Porsche and Audi were marketed together, but while the upscale Audi was a more impressive showroom neighbor than a Beetle would’ve been, the 914 suffered from a seeming lack of commitment from Porsche — there was no badge. The only external place the word Porsche appeared was on the grille above the mid-mounted engine, facing skyward, not towards the cutie at a stoplight.
Given the mixed marketing, rumors began circulation in the press that Porsche was selling out to VW, and Ferry Porsche issued his famous letter stating “Porsche remains Porsche!” His missive went on to state his company’s intentions, providing a bit of foreshadowing in hindsight: “If Porsche were to lose its independence, Volkswagen would be the first to suffer… People can work together without the larger one having to devour the smaller one. This is proved by our agreement, which is doubtless the first agreement in history in which a large international group was willing to join forces with a small company without receiving a share larger than 50%.”
The press was problematic elsewhere regarding the 914. Initial reviews were tepid, not an adjective typically associated with Porsche. The 1.7-liter 4-cylinder 914 could only manage 11.3 seconds to 60, according to Car and Driver, whereas a Datsun 240Z hit the mark in 8.7 for less money. The 914 might be a replacement for the Karmann Ghia, but it wasn’t a Porsche, the magazine claimed. The 914/6 fared better, hitting 60 in 8.7, and Road & Track at least compared it to other Porsches, describing how while the 911 seemed to inherently follow the road, the 914 must be aimed, though it responds quickly and precisely to inputs.
Sales were respectable but not profitable. In 1970 the 914 outsold the 912 three to one, but that same year the Deutsch Mark was devalued against the dollar, and the Porsche venture lost VW 200 million DMs.
In an attempt to foster some enthusiasm for the 914, Porsche management decided to enter 914s in the Rally of Monte Carlo, which 911s had won three years in a row. Drivers protested, claiming that 911s were much better in the snow, but were overruled by managers eager for press and profits. In the snowiest Monte Carlo in memory, Renault Alpines won decisive 1-2-3 victories.
In 1972 Kurt Lotz, the manager who had denied Porsche cheap 914 bodies, retired from VW surrounded by a sea of red ink on the balance sheets. His successor was Rudolf Leiding, who was determined to make all VWs front-engined and front wheel drive. The 914 remained in production, getting an increase in engine displacement in 1973 as well as an improved gearbox, but the 914/6 was retired after 3,360 units and disappointing profits. Work soon began on the 924.
After a six year run of 115,596 cars, the 914 ceased production in 1976. Porsche and Volkswagen had mixed their messages with the car, and after a few broken promises and economic difficulties, any partnership is bound to suffer.
The 914, now some 27 years old, is seeing a renaissance. At its conception it was meant to follow the trend of mid-engine cars, but that trend never caught on with anything but fairly high-end producers. However, with its generous front and rear trunks and light weight the 914 is developing a cult following amongst do-it-yourself electric car converters who place batteries in the trunks. The automotive world awaits a comparo between electric 914s laden with batteries against a Mercedes 300D running on veggie oil.
And 22 years after the last 914, headlines are about a takeover in the German automobile industry. This time it’s Porsche taking over VW. Wolfgang Porsche, the youngest son of Ferry, runs Porsche. The supervisory board chairman of VW is Ferdinand Piech, whose mother Louise was Ferry’s sister and whose father was Anton Piech, a longtime business partner of Ferdinand Porsche. On behalf of his company, Wolfgang Porsche claims his interest in VW is to insure that no one else buys it. Plans are for VW to aid in manufacture of the upcoming Porsche Panamera sedan. He’d better get that in writing.
–Chris Dykes