The Untold History of Porsche’s Contracted Development

When you think of Porsche, most people probably picture sports cars like the 911, Boxster, or Cayman.

However, when Ferdinand Porsche founded the company in 1931, there was reportedly no intention to build cars under its own brand. Instead, the business focused mainly on contracted development projects for other manufacturers.

Even after unveiling its first in-house brand car, the 356, in 1948, Porsche actively accepted development requests from external clients. This business model is said to have helped the company weather financial hardships such as the 1970s oil crisis and a 72% drop in sales between 1986 and 1993.

Through collaborations with a variety of manufacturers, from Mercedes to Lada, Porsche ended up creating some of the world’s most popular cars. So today, let’s take a look at three surprising cars developed by Porsche.

1. Volkswagen Beetle – The Birth of the “People’s Car”

In 1934, under the Nazi regime, Porsche was commissioned to develop the “People’s Car” (Volkswagen), which later became the Beetle. After World War II, Volkswagen was managed by the Allied forces, who initially regarded the Beetle as noisy and impractical.

However, once imported to the United States, the Beetle’s excellent design, durability, economy, and compactness were highly praised, leading to huge success. By 1968, it became the world’s best-selling car, transforming its image from Hitler’s “People’s Car” to a symbol of Germany’s recovery and world peace.

Although the Beetle is not a Porsche-branded car, it laid the foundation for Porsche’s first in-house model, the 356, and can be considered a precursor to the later 911.

2. Mercedes-Benz 500E – An Unusual Collaboration with a Rival

In the late 1980s, when Porsche was once again facing financial difficulties, an unexpected opportunity came from its longtime rival, Mercedes-Benz.

At the time, Mercedes was losing ground in the luxury segment due to the arrival of the Lexus LS400. Busy developing the new S-Class, Mercedes commissioned Porsche to fit the M119 V8 engine into the W124 chassis.

Porsche determined that the chassis needed to be widened and ultimately production was carried out by shuttling between Mercedes and Porsche factories. The resulting 500E is regarded as one of the finest luxury sedans ever made and also helped save Porsche from financial crisis.

For the AMG version, see our past test drive review of the E60.

3. Audi RS2 Avant – The Beginning of the RS Series

Audi’s RS models are known as the brand’s pinnacle of performance. Surprisingly, the RS series began with a sporty wagon.

Like the Mercedes 500E, the Audi RS2 was born from Porsche’s side projects during a financially tough period. Audi needed a successor to the legendary Quattro and a competitor to the BMW M3, so they enlisted Porsche’s help.

Porsche improved Audi’s 5-cylinder turbo engine to produce 315 horsepower and 410 Nm of torque. They also handled chassis tuning and provided a unique suspension setup. The RS2 became a symbol of collaboration between the two companies, using parts directly from the 911 such as brakes, side mirrors, and wheels.

Also Involved in Minivan Development

Porsche also collaborated with Opel, even contributing to minivan development.

For the Opel Zafira, Porsche devised an innovative seat design that allowed two additional seats to be pulled out from the floor, converting it into a 7-seater. The resulting Zafira received positive reviews from European automotive media.

Photo by MechDesign.xyz

These examples show that Porsche is not just a sports car manufacturer but a company with broad automotive development capabilities. Contracted development, which began as a way to overcome financial difficulties, ultimately became an opportunity to showcase Porsche’s technical prowess and flexibility to the world. While we don’t hear much about contracted projects these days, it will be exciting to see what kinds of projects Porsche will take on in the future.