Service and Operations Management

Porsche: The Crisis of 1992

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In September 1992, Dr. Wendelin Wiedeking accepted the challenge of saving the company Dr.Ing.h.c. F. Porsche AG, the last remaining independent sports car manufacturer in the world. Porsche had experienced a significant reduction of sales (both in revenue and units), key people had left the company and customers perceived its products as either too old or too expensive. Several other top executives in the automotive industry had turned down the offer of running the famous company, and industry experts expected the company to disappear or become part of Volkswagen or Daimler-Benz. The case describes the period leading up to September 1992 and ends with the appointment of Dr. Wiedeking.
Bibliographic citation: Orozco, Arturo; Sachon, Marc, "Porsche: The Crisis of 1992", IESE, P-1100-E, 04/2010
Date: 20/04/2010
Author(s): Orozco, Arturo; Sachon, Marc
Document type: Case
Editor(s): CIIL - Centro Internacional de Investigación Logística
Department: Production, Technology and Operations Management
Sector: Industry and Manufacturing
Languages: Spanish / English
Year of the events: 1992
Geographic area: Germany
Learning objective The case puts students into the position of developing a turn-around plan for Porsche. During the last 20 minutes of class, the instructor will compare the plan developed by the students with the actual events, i.e., with one of the most successful turn-arounds ever seen in the automotive industry.