PorscheThe Founding
6 min readChapter 2

The Founding

Following its establishment in 1931, Dr. Ing. h.c. F. Porsche GmbH rapidly immersed itself in a range of challenging engineering commissions. The firm, founded by Ferdinand Porsche, operated primarily as a design and development consultancy, a business model that allowed it to apply its expertise across various industrial sectors without the substantial capital intensity of direct manufacturing. Initial projects included groundbreaking engine designs for manufacturers like Zündapp and NSU, demonstrating the company's versatility and technical depth. Most notably, the firm secured the monumental commission for the 'people's car' concept that would evolve into the Volkswagen Beetle. This particular undertaking, officially initiated in 1934 following a direct mandate from Adolf Hitler, demanded an innovative approach to cost-effective engineering and mass production. It tasked Ferdinand Porsche and his burgeoning team with the complete vehicle design, including its robust air-cooled flat-four engine, distinctive torsion bar suspension, and an overarching philosophy of simplicity and reliability. This monumental effort not only provided significant revenue for the nascent firm – which had grown to approximately 60 employees by the mid-1930s – but also profoundly honed its capabilities in fundamental automotive engineering and the complexities of high-volume production.

As the 1930s progressed, Porsche GmbH's involvement with the Volkswagen project deepened considerably, encompassing not just design but also the meticulous planning of the immense Volkswagenwerk factory at Fallersleben. This involvement positioned the company at the forefront of German automotive engineering and industrial planning, solidifying its reputation for technical prowess and a pioneering spirit in mass-market vehicle design. However, the onset of World War II dramatically altered the company's trajectory. While civilian vehicle development largely ceased, the firm's considerable engineering talents were swiftly redirected toward military applications. Records indicate that Porsche GmbH contributed significantly to the design of various military vehicles, including the Kübelwagen, a lightweight and incredibly versatile utility vehicle, and the Schwimmwagen, an amphibious variant, both built on the rugged Volkswagen platform and known for their exceptional adaptability in harsh environments. More significantly, Ferdinand Porsche and his team were deeply involved in the design of heavy military vehicles. Porsche's design philosophy, particularly his preference for petrol-electric drive systems, was applied to components for tanks such as the Tiger I (specifically the initial VK 45.01 (P) prototype, though ultimately Henschel's design was chosen for mass production) and most notably, the Elefant tank destroyer. The Elefant leveraged Porsche's complex electrical drive system, a technically ambitious solution that, while offering high power output, presented considerable maintenance challenges in the field. This period saw the company's resources and intellectual capital almost entirely dedicated to military engineering, showcasing its adaptability under extreme pressure.

The end of the war brought immense challenges and profound changes for the Porsche family and their company. Ferdinand Porsche himself was arrested by Allied forces in December 1945 on charges related to wartime activities, spending 20 months in confinement, primarily in France. During this critical period of leadership vacuum, the immediate operational leadership of the firm fell to his son, Ferry Porsche. With the original Stuttgart facilities heavily damaged by Allied bombing and subsequently under Allied control, Ferry Porsche made the pivotal decision to relocate operations to Gmünd, Austria. Here, in a remote and rather primitive sawmill building, he established a secluded and functional space to continue engineering work. This period was marked by acute resource scarcity, devastated infrastructure, and immense operational difficulties. Despite these overwhelming obstacles, the commitment to automotive innovation persisted, fueled by Ferry's ingenuity and the loyalty of a small, dedicated team. Financial stability during this time was precarious, largely sustained by minor engineering contracts and, crucially, a licensing fee arrangement for the Volkswagen Beetle as production of the "people's car" slowly resumed in Allied-occupied Germany. This financial lifeline proved instrumental in keeping the company afloat and funding its next ambitious project.

It was in Gmünd, under Ferry Porsche's astute guidance, that the company transitioned from being purely a design consultancy to a manufacturer of its own vehicles. Drawing heavily on the expertise gained from the Volkswagen project and inspired by a long-held ambition within the Porsche family to build a high-performance sports car, development began on a new model. The conceptualization revolved around utilizing readily available Volkswagen components—primarily the engine block, transaxle, and suspension elements—but systematically re-engineering them for a performance-oriented application. This strategic decision was driven by both necessity, given the severe post-war economic conditions and limited access to bespoke parts, and a clear understanding of the emerging market demand for agile, efficient, and reliable sports cars in war-torn Europe. Ferry Porsche envisioned a car that embodied lightweight construction, superior handling, and advanced aerodynamics, capable of delivering exhilarating performance without excessive power.

On June 8, 1948, the Porsche 356/1 Roadster, the first automobile to officially bear the Porsche name, was completed. This seminal prototype, constructed with a lightweight aluminum body and a significantly modified 1.1-liter Volkswagen engine, marked a pivotal moment. The VW engine, originally delivering around 25 horsepower, was enhanced through new cylinder heads, a custom camshaft, increased compression, and twin carburetion, boosting its output to approximately 35 horsepower. While only one 356/1 was built, its success directly led to the production of the Porsche 356 series. The early 356 models, initially produced by hand in the rudimentary Gmünd workshops, rapidly gained traction among enthusiasts. Their lightweight construction, efficient aerodynamics (refined by Erwin Komenda), and superior handling characteristics, particularly when combined with the robust and tunable Volkswagen-derived engine, offered a compelling proposition in the nascent post-war automotive landscape. Production numbers remained modest in Gmünd, with approximately 50 units meticulously crafted between 1948 and 1950, each exemplifying the company's commitment to quality and performance. These initial cars found eager buyers in Austria, Switzerland, and were even among the first Porsche exports to the Netherlands.

The success of the Gmünd-produced 356s demonstrated a clear market validation for Porsche's vision of a refined, performance-oriented vehicle. This initial market acceptance provided the impetus for a significant strategic move. In 1949, with Ferdinand Porsche released from confinement, the company's financial footing stabilized by the ongoing Volkswagen licensing income, and the West German economy beginning its robust recovery (the "Wirtschaftswunder"), the company began planning its return to Stuttgart-Zuffenhausen. By 1950, Porsche AG had re-established its primary manufacturing operations in Zuffenhausen, relocating into leased factory space adjacent to the Reutter coachbuilding factory. This partnership was crucial, with Reutter becoming a key partner for body production, providing sophisticated sheet metal work that the smaller Porsche operation could not yet manage internally. This relocation was crucial for scaling production from artisanal levels to a more industrialized process and for accessing a broader supplier network, marking a definitive shift from a small, ad-hoc operation to a more formalized manufacturing entity. The founding phase, culminating in the successful launch and increasing production of the 356 series, firmly established Porsche as a recognizable name in the automotive world, laying the commercial and operational foundation for its subsequent growth as a dedicated sports car manufacturer and setting the stage for its global recognition.