The day Toyota saved Porsche from bankruptcy with a lesson in methodology

In the early 1990s, Porsche was going through one of the most serious crises in its history. Sales plummeted from almost 60,000 units in 1986 to just over 15,000 in 1993, and losses exceeded $180 million. With an aging lineup and an outdated 911, the company's future seemed increasingly uncertain.

In the midst of this situation, German engineer Wendelin Wiedeking, who had worked in production at Porsche and later in the components industry, returned to the company in 1991 as production director. Convinced that the Japanese model could save the company, he organized a trip for executives and employees to the Toyota, Nissan, and Honda factories. There, everyone was able to see firsthand the "Just in Time" methodology that had boosted the competitiveness of Japanese industry.

In 1992, already as CEO, Wiedeking hired the Japanese consulting firm Shingijutsu Global Consulting (SGC), formed by direct disciples of Taiichi Ohno, creator of the Toyota Production System. The initial diagnosis at the Zuffenhausen plant was overwhelming: excess inventory, inefficient processes, and an oversized organizational structure.

The first measures were drastic: parts inventory was reduced from 28 to 7 days of production, shelving was reduced to streamline work, and operators' routes on the assembly line were improved. Furthermore, the goal of assembling cars without defects was established, eliminating the need for adjustments at the end of production. As a result, in July 1994, Porsche produced its first fault-free vehicle, and assembly time fell from 120 to 72 hours.

The restructuring also affected the workforce: a third of the managers were laid off, the rest were given new roles, and the total workforce was reduced by 19%. At the same time, a key strategic decision was made: to abandon the transaxle models and focus the range on the 911, while developing a new entry-level sports car, the Boxster, which would share much of its engineering with the new generation of the 911.

The launch of the Boxster in 1996 not only attracted new customers, but also strengthened the brand image by directly associating it with the legendary 911. Cost and process optimization allowed Porsche to regain profitability and lay the groundwork for its next big move: the development of the Cayenne SUV, which would consolidate its position in the global market from 2002 onwards.

Today, the collaboration with Toyota is studied as an example of how a European luxury brand was able to revive itself by adopting Japanese industrial efficiency methods. "Just in Time" not only saved Porsche in the 1990s, but also transformed its production culture and corporate strategy forever.