In the daily-driver marketplace, Porsche's traditional rivals are its fellow German automakers Mercedes-Benz SLK, for instance), as well as Lotus, Jaguar, and Maserati. Ferrari, on the other hand, competes more directly with firms such as Lamborghini, Bugatti and Pagani.

History

Professor German government to design a car for the people, a ''"Volkswagen"'' in German. This resulted in the Volkswagen Beetle, one of the most successful car designs of all time. The first Porsche, the Porsche 64, was developed in 1939 using many components from the Beetle.

During World War II Volkswagen production turned to the military version of the Volkswagen Beetle, the Kأ¼belwagen, 52,000 produced, and Schwimmwagen, 14,000 produced. During a contract bid for a new tank Porsche lost to Henschel & Son who subsequently produced the Tiger I. Porsche assisted in the designing of the Tiger tank series and the Elefant tank.

In 1945 the Volkswagen factory fell to the British. Ferdinand lost his position as Chairman of the Board of Management of Volkswagen and a British major, 356 were built in a small sawmill in body. Porsche constructed an assembly plant across the street from Reutter Carosseri; that assembly plant is now known as Porschestrasse. The 356 was road certified in 1948.

Not long afterwards, on January 30, 1951, Ferdinand Porsche died from complications following a stroke.

In post-war Germany parts were generally in short supply, so the 356 automobile used components from the Volkswagen Beetle including its engine, suspension. The 356, however, had several evolutionary stages, A, B, and C, while in production and many VW parts were replaced by Porsche-made parts. The last 356s were powered by entirely Porsche-designed engines. The sleek bodywork was designed by Erwin Komenda who also had designed the body of the Beetle. Porsche's signature designs have, from the beginning, featured air-cooled rear-engine configurations (like the Beetle), rare for other car manufacturers, but producing automobiles that are very well balanced.

In 1964, after some success in Porsche 550 Spyder, the company launched the "boxer" engine. The team to lay out the body shell design was led by Ferry Porsche's eldest son, Keiper-Recaro.

The design group gave sequential numbers to every project (356, 550, etc.) but the designated 901 nomenclature contravened rallies, and in terms of sales. Far more than any other model, the Porsche brand is defined by the 911. It remains in production; however, after several generations of revision, current-model 911s share only the basic mechanical concept of a rear-engined, six-cylinder coupe, and basic styling cues with the original car. A cost-reduced model with the same body, but 356-derived running gear (including its four-cylinder engine), was sold as the 912.

thumb|250px|left|The Porsche 912, a Porsche of the 1960s In 1972 the company's legal form was changed from limited partnership to public limited company (AG in German), because Ferry Porsche and his sister, Porsche Design, which is renowned for exclusive sunglasses, watches, furniture, and many other luxury articles. Ferdinand Piأ«ch, who was responsible for mechanical development of Porsche's serial and racing cars, formed his own engineering bureau and developed a 5-cylinder-inline diesel engine for Mercedes-Benz. A short time later he moved to Audi and pursued his career through the entire company, up to and including, the Volkswagen Group boards.

The first 928. As we know today the 911 outlived the 928 by far. Fuhrmann was replaced in the early 80s by Z1 model and today is CEO of Aston Martin.

In 1990, Porsche drew up a memorandum of understanding with date=August 2008}} Porsche with [[hybrid electric vehicle|hybrid technology, rumored to be making its way into a Hybrid Cayenne SUV, as well as the upcoming four-door coupe, the Panamera.

Following the dismissal of Bohn, an interim CEO was appointed, longtime Porsche employee, Heinz Branitzki, who served in that position until Dr. Wendelin Wiedeking became CEO in 1993. Wiedeking took over the chairmanship of the board at a time when Porsche appeared vulnerable to a takeover by a larger company. During his long tenure, Wiedeking has transformed Porsche into a very efficient and profitable company.

Ferdinand Porsche's grandson, Ferdinand Piأ«ch, was chairman and CEO of the Volkswagen Group from 1993 to 2002. Today he is chairman of the supervisory board. With 12.8 per cent of the Porsche voting shares, he also remains the second largest individual shareholder of Porsche AG after his cousin, F. A. Porsche, (13.6 per cent).

Porsche's 2002 introduction of the Cayenne also marked the unveiling of a new production facility in Saxony, which once accounted for nearly half of Porsche's annual output. The Cayenne Turbo S has the second most powerful production engine in Porsche's history, with the most powerful belonging to the Carrera GT.

In 2004, production of the Carrera GT commenced in Leipzig, and at EUR 450,000 ($440,000 in the United States) it was the most expensive production model Porsche ever built.

As of 2005, the extended Porsche and Piech families controlled all of Porsche AG's voting shares. In early October 2005 the company announced acquisition of an 18.53% stake in Volkswagen AG and disclosed intentions to acquire additional VW shares in the future. As of June 2006, the Porsche AG stake in Volkswagen had risen to 25.1%, giving Porsche a blocking minority, whereby Porsche can veto large corporate decisions undertaken by VW.

In mid-2006, after years of the Boxster (and later the Cayenne) as the dominant Porsche in North America, the 911 regained its position as Porsche's backbone in the region. The Cayenne and 911 have cycled as the top-selling model since. In Germany the 911 clearly outsells the Boxster/Cayman and Cayenne. Porsche USA press release 11 September 2006

Relationship with Volkswagen

On 26 March 2007, Porsche took its holding of Volkswagen shares to 30.9%, triggering a takeover bid under German law. Porsche formally announced in a press statement that it did not intend to take over Volkswagen (it would set its offer price at the lowest possible legal value), but intended the move to avoid a competitor taking a large stake or to stop hedge funds dismantling VW, which is Porsche's most important partner. Porsche's move comes after the European Union moved against a German law that protected VW from takeovers. Under the so-called "Volkswagen Law", any shareholder in VW cannot exercise more than 20% of the firm's voting rights, regardless of their level of stock holding. The Court of Justice struck the law down on 23 October 2007, potentially paving the way for a takeover.[http://www.managementtoday.co.uk/channel/StrategyOperations/news/754256/vw-law-write-off Top EU court finds against VW law

Corporate Restructure

On 3 March 2008 Porsche set the stage for obtaining a majority stake in the fellow Volkswagen. Porsche sought on 4 March 2008 to allay fears it would attempt to force a merger with Volkswagen.Porsche rules out Volkswagen merger

Auto racing

thumb|right|250px|The Martini Racing blue and green "''psychedelic''" livery on a 1970 917K. This car raced at Watkins Glen in 1970. Porsche has been successful in many branches of auto racing, scoring a total of more than 28,000 victories. Porsche is currently the world's largest race car manufacturer. In 2006, Porsche built 195 race cars for various international motor sports events. In 2007, Porsche is expected to construct no fewer than 275 dedicated race cars (7 RS Spyder LMP2 prototypes, 37 GT2 spec 911 GT3-RSRs, and 231 911 GT3 Cup vehicles).AutoWeek Porsche Story, ''Warehouse Shopping'', March 7, 2007

Pronunciation of "Porsche"

=North American sales