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#236: Porsche – From Inexpensive To Luxury

#236: Porsche – From Inexpensive To Luxury

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Ferdinand wanted to make cars for the people, but the Porsche brand we know is an empire of performance. Dave Young: Welcome to the Empire Builders Podcast, teaching business owners the not-so-secret techniques that took famous businesses from mom and pop to major brands. Stephen Semple is a marketing consultant, story collector, and storyteller. I’m Stephen’s sidekick and business partner, Dave Young. Before we get into today’s episode, a word from our sponsor, which is, well, it’s us, but we’re highlighting ads we’ve written and produced for our clients, so here’s one of those. [ASAP Commercial Doors Ad] Dave Young: Welcome to The Empire Builders Podcast. It’s the podcast where we talk about empires that were built, businesses, business empires. You know what we… If you’ve listened before, you know… Stephen Semple: Something like that. I get it. Businesses that have done pretty well over the years. Dave Young: They started small. Stephen Semple: They started small. Dave Young: They started small and then they got big. They got so big to the point that you could call them an empire. Stephen Semple: That’s it. That’s the idea. Dave Young: It’s a pretty simple premise. Stephen Semple: That’s it. Dave Young: So as we counted down, Steve told me the topic today and it’s Porsche. Stephen Semple: Yes, sir. Dave Young: Porsche. I’m assuming this is the car. Stephen Semple: The car, yes, the car. Dave Young: Okay. Stephen Semple: The car. Dave Young: And I’m trying to… I know some Porsche jokes, but I probably shouldn’t tell those on this show. I’m trying to think if I’ve ever actually been in a Porsche. Stephen Semple: Oh, well then you’ve got to come up and see me, Dave. Dave Young: You own one. I know you own one. Stephen Semple: Well, I have one. Bernier’s got two. I don’t know how many Steve has. Dave Young: I see how it is. I see how it is. Maybe I will tell my Porsche joke. So you guys that own them, do you call it Porscha? Because some of us just say Porsche. Stephen Semple: Well, if you actually take a look back, that’s the proper German pronunciation as Porsche. Dave Young: Porsche, okay. Stephen Semple: And it’s supposed to not be… It’s not Italian Porsche, right? So it’s Porsche. Dave Young: Porsche, Porsche. Okay, I’ll accept that. I’ll accept that. I’m guessing we’re- Stephen Semple: Well, look, you got to always call a dealership to double check. They’ll tell you. Dave Young: Now, if I had to guess where we’re headed to start this off sometime around the 40s, maybe earlier. Stephen Semple: A little earlier than that, actually. It was founded by Ferdinand Porsche in 1931 in Stuttgart, Germany. You’re not far off. But the interesting thing is where the growth really happened, even though that’s when it was founded, when things really started to happen, was actually post-World War II. Dave Young: That makes sense. Stephen Semple: You’re correct on that. Dave Young: So, it started in 31 and by the time you hit the late 30s and 40s, you’re part of the war machine. Stephen Semple: Yes. Dave Young: Okay. Stephen Semple: So it was founded in 1931, Stuttgart, Germany by Ferdinand. And when we take a look at the history of the business for a very long time, they were a part of the VW group, although they were recently spun off into their own separate business. And there’s a lot of shared history between VW and Porsche. A lot of people make fun of the fact that it’s basically a VW. There’s so much connection. Now here’s the other thing is, there’s a lot of connection in Nazi Germany here as well. And I mean- Dave Young: That’s what I was intimating but trying not to say, but yes, there was definitely. Stephen Semple: And not one of these ones of, “Oh, I’m a business and I got sucked up into the machine.” I mean, very early on. Very early on. Ferdinand was a member of the SS following the war, both he and his son were charged. Dave Young: No kidding. Stephen Semple: He served two years in jail. His son six months. So we’re not talking loose connections here. He was a buddy of Adolf. Let’s just put it out there. And if you remember, going back to episode 21, VW was founded by Nazi Germany. So episode 21 about The Beetle, and Ferdinand was the guy who designed the Beetle. Dave Young: Right, right. I remember you saying that, Ferdinand Porsche. Stephen Semple: And look, Porsche has not always had the success it has today. It’s become pretty big. They do 40 billion EU in sales. They have 40,000 employees. They make 300,000 cars. There was a time that they’re making cars in the hundreds and thousands. It wasn’t that long ago. But let’s go back to Germany to the early 1900s. And if we think about Germany at that time, pre-World War II, pre-World War I, ...
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