Lindsey Graham (0:00)

Want to get more from business movers? Subscribe to Wondery for early access to new episodes, ad free listening and exclusive content you can't find anywhere else. Join Wondery in the Wondery app or on Apple podcasts. It's early November 1945, at the Porsche family estate in Zell Amzee, Austria. 70 year old car designer Ferdinand Porsche sits by the fire, staring into the flames. A stack of technical drawings lies untouched on the small table beside him. Ferdinand's mind, usually racing with designs, feels adrift. Six months ago, World War II came to an end in Europe. Ferdinand has been cleared by British and American investigators for his role as one of Nazi Germany's leading industrialists. But his future, and that of his business is still deeply uncertain. A knock on the door rouses Ferdinand from his thoughts and he eases himself up from his chair. He opens the door to find a small group of men in French uniform. An officer steps forward. Dr. Porsche? Yes. Lieutenant Lecomte of the French Army. May I have a moment? Of course, Lieutenant. Please take a seat. Ferdinand shows the officer to an empty chair by the fire and retakes his seat. What brings you all the way out here to the American sector? I've come on behalf of the Minister of Industrial Production, Marcel Paul. He's a great admirer of your work. Well, my work is mostly in ruins, that's true. But opportunities can emerge from ruins, Dr. Porsche. Minister Paul is rebuilding France's industrial capacity and he'd like to consult with you. Ferdinand raises an eyebrow. What exactly does the Minister have in mind? We're negotiating over the future of the Volkswagen factory with our Allied partners. The Minister is exploring the possibility of relocating its equipment to a new site in France. But the machinery is useless without the mind that conceived it. You want me to build you a car factory? It would be a national project backed by the French government. Your firm would be central to this. Of course. We envision a close partnership. Ferdinand considers the proposal. A major state sponsored project like this could bring his company back to life. Well, where would this factory be? What are the terms? These are details best discussed with the Minister in person. I believe he's in Baden Baden and is eager to meet with you. Oh, I'm not sure it's safe for me to travel to Germany. My name's been linked with certain, I don't know, controversies where you would travel under French authority and protection. I assure you, Dr. Portia, you would be quite safe. Ferdinand gazes into the fire and then turns to the officer. Very well, Lieutenant. Inform the Minister that I accept his invitation. I'll come to Baden Baden to discuss this matter further. Oh, excellent. Dr. Porche, you leave tomorrow. Minister Paul will be most pleased. And I'm sure this will be the beginning of a fruitful collaboration. As Ferdinand Porsche watched Lt. Lecomte leave, he felt a flicker of excitement about his work. For the first time in months, this French proposal seemed to offer Ferdinand a shortcut back to success. But by agreeing to travel to the French zone of control, Ferdinand wasn't saving his company. He was walking into a carefully laid trap. Business Movers is sponsored by shokz. This is a business show and making it is my business, which means I take audio seriously. My microphone is German, my preamplifier is English, my digital converters are high spec. Everything is chosen for quality so that if you were to listen listen to this podcast on some magnificent vacuum tube stereo through gleaming tower speakers, you'd be able to say, that's a good sounding podcast. But no one does that, do they? I don't either. Podcasts are not hi fi listening, even if I make them like they are. Instead, they're really great to listen to while driving, shopping, running, working out, and for that sort of listening, Shokz Open Dots 1 makes a real difference. They're lightweight, clip onto your ear securely and let you hear what's around you while still delivering amazing sound. I like that they're comfortable first and foremost, but to also deliver great, great sound without having a pair of three way speakers duct taped to your head. Even better. Shokz is a leader in open ear headphones and Open Dots 1 is their latest innovation. Take a look at Shokz.com, s H O K Z and don't forget to use code movers for $10 off, that's S-O-Kz.com stay sharp, stay open With Shokz when you're with Amex Business Platinum, you have the card that helps businesses dream bigger, get a flexible spending limit that adapts with your business, and earn 1.5 times Membership Rewards points on select business purchases. So you can stock up on what you need to take your business further and get rewarded for growing bigger. That's the powerful backing of American Express. Not all purchases will be approved. Terms apply. Learn more@americanexpress.com AmExBusiness from WonderRap I'm Lindsey Graham and this is Business Movers. Ferdinand Porsche had been one of Nazi Germany's most important engineers before World War II. He had dreamed of producing a car for the ordinary people. But once the fighting started. He began creating weapons for Adolf Hitler's war machine. Ferdinand's Volkswagen was put on hold and the assembly line built for it was adapted to churn out military vehicles and parts for V1 rockets. But after the defeat of Germany in May 1945, investigators probing Nazi war crimes quickly turned their attention to the role of industrialists like Ferdinand. They found evidence that thousands of prisoners of war and concentration camp inmates had been worked to death in in German factories. And as the Allies sought to bring all surviving Nazis and their enablers to justice, the Porsche company came under mounting suspicion. Ferdinand, his son Ferry and son in law Anton Piech were all detained and questioned by American and British officers. Eventually, all three were cleared and released. But Ferdinand still faced a battle to rebuild his company. Portia had been reduced to little more than a name. Its financial assets were frozen. Its facility in Stuttgart was occupied by the U.S. army. Its workshop in Gumund was in the Soviet zone of control. And the huge Volkswagen factory facility was now controlled by the British. But as Ferdinand began making plans to revive his business, another Allied power showed interest in the famous engineer. The French wanted Ferdinand to help rebuild their car industry after six years of war. So in November 1945, Ferdinand packed his bags and traveled 300 miles to Baden Baden, in the part of Germany occupied by the French. He hoped this trip would rekindle his career, but it would not. This is the second episode in our four part series on Porsche Stalled. It's December 15, 1945 at the Hotel Muller in Baden Baden, Germany. One month after Ferdinand Porsche was visited by French soldiers. Ferdinand wipes his mouth with a linen napkin. Due to wartime rationing, the meal he's just finished is the best he's enjoyed in years. But it's the only highlight of his trip so far. Since he arrived in Baden Baden, Ferdinand has been mostly ignored. Meetings with senior officials have been repeatedly delayed. And when the French finally handed over a contract, there was almost nothing in it about his promised role as a consultant. Instead, the terms focused solely on transferring Volkswagen assets to France. Ferdinand began to suspect that the French didn't really want his help. They just needed him to sign over his rights to the Volkswagen factory and its machinery. So Ferdinand booked himself a train back to Austria. This morning, though, French Minister of Industrial Production Marcel Paul asked Ferdinand to join him for dinner. Eager for some answers, Ferdinand agreed. Well, that was an excellent dinner, Minister Paul. Thank you. I hope it makes up for the delay. I realize you've been waiting to see me for some time. Several weeks. Oh, my apologies. I've been needed in so many places, but now I'm here. I hope I can persuade you to enjoy French hospitality for a little longer. My train leaves in the morning, unfortunately. But France needs minds like yours, Dr. Portia. Yes, but for what exactly? To sign a piece of paper that hands you my life's work? I would hope that that contract would be just the beginning of our relationship. France wishes to develop its automobile industry. We want to build something new, something practical and affordable for ordinary people. Does this sound familiar to you? Yes, it sounds very much like the Volkswagen. And I would be happy to work up some designs for you. I can start as soon as I get back to my workshop in Gamut. We'd much prefer it if you joined us in France, though. Gamut is where I do my best work and I have other responsibilities. Believe me, Dr. Portia, it would be far better for you and your family if you came to France willingly. Willingly? Are you threatening me, Minister? No, no, not at all. I just mean that this is an opportunity for you to cleanse yourself and your family of the stain of your involvement with the Nazis. Minister, I. I'm an engineer. I had nothing to do with the Nazis. One of my best friends was Jewish. I abhorred all that unpleasantness. Unpleasantness? Yes, that is one word for it. I was in the camps, you know, Auschwitz and Buchenwald. Ferdinand stiffens I'm sorry, I hadn't heard, but believe me, I knew nothing about that. You will not accompany me to France? I thank you for this excellent dinner, but my train leaves early tomorrow. I really must return to Khmud. Very well. Paul signals to an officer standing near the door who approaches the table. The Minister whispers in his ear and the officer moves to stand behind Ferdinand's chair. I'm sorry, Dr. Portia, your departure will have to be delayed. It appears there's an issue with your papers. Ferdinand flinches as the officer behind him places a firm hand on his shoulder. I'm sure it's just a bureaucratic mix up and as soon as it's all sorted out, you'll be free to go. Marcel Paul had no intention of letting Ferdinand Porsche go free. Instead, Ferdinand had his passport confiscated and was taken under armed guard to Paris. The French authorities were convinced that the he would be useful to them. But as Ferdinand would soon discover, it wasn't just a car designer they were after. It was a scapegoat. At first, Ferdinand Porsche's time behind bars was relatively comfortable. He was joined in French captivity by his 36 year old son Ferry Porsche, and his 51 year old son in law, Anton Pieche. They all shared their confinement with several other wealthy industrialists who'd also been detained for their roles in Germany's wartime economy. These prisoners were free to socialize and play cards together, and they could call on friends and family to provide them with extra wine or food. Still, when French investigators began to question him, Ferdinand realized that his comfortable surroundings were misleading. He was facing serious charges. To his surprise, though, interrogators showed little interest in his designs for the German armed forces. And they didn't ask him about the use of forced labor at the Volkswagen factory or the Porsche workshop. Instead, they focused their attention almost entirely on his dealings with Peugeot, one of France's largest and oldest automobile manufacturers. During the war, the main Peugeot factory had been in the region of France ruled by the Vichy government, a puppet regime controlled by the Nazis. Vichy ministers had allowed the German army to take over French industry to support the war effort. And the Peugeot factory was among those that were converted to produce military vehicles and weapons for the Nazis. And since some of the parts made there were destined for vehicles designed by Ferdinand, he'd visited the Peugeot factory several times and advised managers there on how to improve production. Now, French officials scrutinized every detail of Ferdinand's interactions with Peugeot. They asked him about the reason for every visit. They demanded details about what contracts Porsche had that involved Peugeot. They wanted to know everything they could about production quotas and how Peugeot's management and workers were treated when the factory was under Vichy control. Ferdinand had been involved in running the Volkswagen factory and Porsche workshop, both of which had used forced labor. But he'd only had a minor role at Peugeot, and he'd had no input into the brutal treatment of workers there. But the longer the interrogations went on, the more Ferdinand suspected that he was being used as a scapegoat. French collaboration with the Nazi occupiers was a source of intense national shame that threatened the prospects of companies like Peugeot. But in Ferdinand, the French authorities had a useful Nazi engineer that they could pin all the blame on. So several weeks after his arrest, France filed formal charges against Ferdinand. The indictment was damning. It accused Ferdinand of stealing designs, illegally removing machinery, engaging forced labor at the Peugeot factory, and being complicit in the deaths of Peugeot workers. Essentially, they were accusing Ferdinand of war crimes, and if he was found guilty, he could spend the rest of his life in prison or even be executed. But the exclusive focus of the French charges on Peugeot offered a small lifeline to Ferdinand. And his family. It was true that Ferdinand himself had visited the Peugeot factory. So had his son in law, Anton Pieche, in his capacity as manager of the Volkswagen factory. But Ferdinand's son, Ferry, had nothing to do with Peugeot and had never even visited the French plant. Ferdinand made sure that his interrogators knew that. So in March 1946, after three months in custody, the investigation into Fairey Portia was dropped and he was released from prison. But he was still not free to go home. Instead, the French authorities transferred Ferry to an isolated hotel in the Black Forest, back in Germany, but still in the French zone of occupation. There, soldiers monitored his every move. French government officials visited him repeatedly and they all had the same request. They wanted Ferry to take over his father's business and work with them on a French version of the Volkswagen. They hinted that if Ferry cooperated, they'd treat Ferdinand and Anton with leniency, perhaps even dismiss the charges against them too. But Fairey refused. He regarded the French tactics to be little more than blackmail. Eventually, in the summer of 1946, ferry was allowed to return home to the Porsche family estate at Zell Amzee, Austria. There, he tried to pick up the reins of his father's shattered company. But news soon filtered through from France that Ferdinand's health was in decline. Ferdinand was now in his early 70s and suffered from chronic gallbladder complaints. And after his indictment by the French, he'd been transferred to a different prison with harsher conditions. And now he was losing weight at an alarming speed. To help his ailing father, Fairey needed a miracle. And in the early summer of 1947, he got one. The wealthy Italian industrialist Piero Ducio commissioned the Porsche company to design a powerful new car for his Cicitalia racing team. Fairey didn't have his father's decades of experience, but he knew the engineers who had worked for him and he called on them for help. Fairey and his team of designers worked up an initial concept for a single seat car that could reach speeds of 200 mph. Dusio was happy with it, and he paid Porsche in advance on the fee. The first payment was supposed to fund the further development of the race car. But Ferry had another use in mind for the money. Ferry quickly opened negotiations with the French authorities for Ferdinand and Anton's release. After weeks of back and forth, they came to a deal. A large portion of the race car money was paid in what the French authorities described as bailey, although Fairey would only refer to it as ransom. Whatever the name, the payment achieved its purpose. In August 1947, after 20 months in French custody, the charges against Ferdinand and Anton were dropped and they were finally released. By then, World War II had been over for more than two years. During that time, the Porsche company had been in almost total hibernation, with its assets either seized or frozen. But thanks to a sliver of good fortune, Porsche was ready to rise from the ashes. The immense task of salvaging the family business could begin, but from now on, it would no longer be Ferdinand in the driving seat. It would be his son. Business Movers is sponsored by Upwork. Here is a true story. A few years ago I needed to scale up my podcast production business. We were getting busy and I needed to find a sharp, reliable audio editor. So I went to Upwork and quickly found a freelancer who was not only good, but above and beyond good. You'll hear their name in the credits of this episode, even because their work deserves to be called out. So I know with Upwork you can find specialized freelancers in marketing, development, design, podcast, editing. Who knows? Experts who are ready to help you take your business to the next level. And posting my job on Upwork was easy with no cost. Just register, then browse freelancer profiles, get help drafting a job post, maybe even book a consultation. From there, find, connect and hire freelancers that get you Upwork makes the entire process easier, simpler and more affordable with industry low fees. So post a job today and hire tomorrow. With Upwork, visit Upwork.com right now and post your job for free. That's Upwork.com to post your job for free and connect with top talent ready to help your business grow. Upwork.com Here's a tip for growing your business. Get the Venture X Business Card from Capital One and start earning unlimited double miles on every purchase. That's right, with unlimited double miles, the more your business spends, the more miles you earn. Plus, the venturex Business Card has no preset spending limit, so your purchasing power can adapt to meet your business needs. The VentureX business card also includes access to over a thousand airport lounges. Just imagine where the VentureX business card from Capital One can take your business. Capital One what's in your wallet? Terms and conditions apply. Find out more@capital1.com venturexbusiness It's August 1947 at the Porsche Workshop in Gumund, Austria. Twenty months after Ferdinand and Ferry Porsche were detained in France. 38 year old Ferrie stands over a drafting table making a few tiny alterations to a technical drawing. The complex design is Fairey's Vision for Piero Ducio's race car. He's trying to fine tune it, but his mind's not on his work. Ferry's father, Ferdinand, arrived home yesterday. Ferry's relieved that his father is back safely, but he's also worried. Ferdinand has changed a great deal since Ferry saw him last. His ordeal in French captivity has clearly aged him. Ferry looks up from the drawings as the door opens and Ferdinand enters the workshop, leaning on a cane. Oh, Father, you should be resting. I've been resting for the last two years. Can I get you something to eat? I can call someone. No, there's work to be done. Show me the Italian project. We can do that later. You've only just arrived home. How about some soup? You need to get your strength back. Fernand raises his cane. You want me to show you how strong I am? No. So stop fussing. The French, the British, the Americans, they've all tried to prevent me from working. And I'll be damned if my own son's going to stop me. Now. Show me the drawings. They are ready by now, aren't they? Ferry nods his head. Though he'd hoped to work on the designs a little more before his father saw them. The future of the company depends on the success of this project. And Ferdinand is a demanding critic. So, as Ferdinand inspects the blueprints, Fairy watches his father reaction carefully. As you can see, it's a 1.5 liter supercharged mid engine car with four wheel drive. Yeah, I can see all that. Ferdinand taps a part of the blueprint showing the transmission system, the transfer box for the drive system controlled from the steering column. Yeah, we felt it offered the best solution for managing the power distribution. Chassis, tubular space, frame. Okay. Light. Strong. Fernand's gaze remains fixed on the drawings for a long time. Time. And finally he straightens up. He turns from the blueprints to meet his son's eyes. Still not speaking, Fairy thinks something might be wrong. Is everything all right? Do you need something? No, it's the design. You don't like it, do you? Ferdinand takes his son by the arm. Fairy, looking at this. Had I been here, I'd have gone about it in exactly the same way. Fairy Porsche felt a wave of relief. It was the highest praise his demanding father could offer. But Ferdinand's approval signaled more than just his acceptance of the Cisitalia race car design. It also bolstered Fairey's confidence in his own emerging ideas. Because Fairey had his own vision for the future direction of Porsche. And it was entirely different from his father's. Even with his father's endorsement of the design, fairy Porsche faced an immense challenge with the Cicitalia contract. The Italian industrialist Piero Duzio wanted a car that would push the boundaries of engineering and dominate international racing competitions. And he wanted it quickly. But most of his advance payment had already been spent getting Ferdinand Porsche and Anton Pieche out of French captivity. So to cut costs, Ferry and his team of designers had no choice but to remain in the former sawmill. And. But that only made it even more difficult to stay on schedule. The sawmill had only ever been intended as a temporary workshop. It lacked proper machine tools and its remote location in the Austrian Alps made sourcing parts and materials difficult. But there would be no extension to Duccio's deadlines, and it soon became clear why he was so eager to get his hands on the new car. Duccio's textile business in Italy was struggling to make a profit and he was overstretched financially. Without the prize money he hoped his new car would win, there was a real risk that the Cisitalia racing team would fold. When rumors reached Ferry that Duccio was falling into debt, he realized that Porsche was in a vulnerable position. The company relied on a single source of income. If the Cicitalia racing team collapsed before the new car was fully paid for, it could drag Porsche down with it. So to guarantee Porsche's survival, Fairey needed another iron in the fire. Fairey considered his options. He couldn't simply sell the car to other customers. The Cus Italia design was a technological marvel. But there were a limited number of clients who needed such a bespoke, high spec design. One alternative would be to follow his father's example and build a car with mass market appeal. But a vehicle like that needed enormous resources behind it, and Fairey no longer had access to a big money backer. So Fairey came up with a new strategy. He suggested that the company build and sell a sports car to the general public. It would be a premium product by design, but it would be also manufactured in sufficient quantity to provide Porsche with a steady, reliable income. Fairey designated the new car as Type 356 and he set his design team to work. But turning Fairey's concept into reality in Gamund presented enormous practical hurdles. Every part not sourced externally would have to be meticulously fabricated by hand. But the workshop lacked almost all the manufacturing equipment required. So Fairey decided that this new sports car would be made using readily available components. And for that, he turned to the source he knew. Volkswagen, the bombed out Volkswagen factory in North Germany. Company had been rebuilt by the British army and was now operated by local managers under British supervision. Under their control, thousands of Volkswagens were being constructed every year. Officially, the car was the Volkswagen Type 1, although many people preferred to call it the Beetle on account of its distinctive curved shape. Fairey's company still held rights to the design. So he decided he would use the Volkswagen Beetle as a starting point to create a new vehicle. He designed a tubular space frame chassis and bolted on the Beetle's air cooled flat four engine. But unlike the Beetle, which had the engine in the rear, Fairey moved it to the middle for better weight distribution. Then he added the Beetle's transmission, suspension, steering components and brakes. And on June 8, 1948, the first Porsche 356 was completed. Although the 356 was essentially a cannibalized Beetle, it looked quite different to the domed mass market people's car. Instead, the first 356 out of the Porsche's workshop was a sleek, low slung, open topped roadster. But it had taken months to build. Manufacturing cars by hand was a slow and expensive process. Fairey would need the deposits from customer orders to fund future production. But those customers would only commit if Fairey could prove the 356 was a chance, a true sports car and not just a modified Beetle. So Fairey personally took the 356 on its first trip through the demanding Kachberg Pass, a twisting high altitude road near Gumund. Thanks to the car's lightweight chassis, the modest 40 horsepower engine coped admirably with the steep climbs. And its carefully calibrated balance meant that the 356 handled the tight turns easily as well. Having passed this first challenge, Ferry decided to give the car a more public test. Next. He entered the 356 into the Innsbruck city race. And although his car finished behind the purpose built high tech racers it competed with, it finished first in its class and won admiring glances from many spectators. So now that Fairey had a race proven, prototype customers began placing orders. The first was a wealthy Swiss businessman and car enthusiastic who'd heard about the roadster's win at Innsbruck. He visited the Porsche workshop and agreed to buy the open top prototype. He also committed to buying four more as of yet unbuilt fixed roof 356 coupes, sight unseen. That order was just the start and many more followed. But the move from prototype to full production model involved some design changes. The original 356 had its engine in the middle of the car for optimum minimum handling. But that made it complex to build and left no space for luggage or rear passengers. So Fairey decided to mirror the layout of the Volkswagen Beetle by positioning the engine over the rear axle. This new configuration compromised performance slightly, but it offered significantly more practicality by creating room for rear seats or a luggage compartment. Almost 50 were built and sold in the first year, and each new 356 was meticulously hand assembled and delivered to its happy new owner as soon as it rolled out of the workshop. Fairey had designed the 356 to safeguard Porsche's future, and it quickly proved its importance to the company. In 1949, Piero Ducio's Cicitalia racing team was declared bankrupt, owing the equivalent of thousands of dollars to Porsche. Prior to the development of the 356, that would have dealt a fatal blow to Fairey's company. But now he at least had sales of his sports car to fall back on. And Porsche had taken so many orders for the 356 that the waiting list was growing longer and longer every week. The Production of the 356 was limited by how quickly Porsche staff could work, and Fairey found that there was one particular bottleneck in the process. The sleek aluminum bodies of the 356 were made by Friedrich Weber, a master craftsman who'd been with Porsche since its early years. But it took Friedrich two months to mold the body panels for a single car. He was a perfectionist whose work was undoubtedly brilliant. But Ferry suspected that part of the reason why Friedrich worked so slowly was his tendency to sneak out of the workshop in the middle of the day. Friedrich claimed that he was walking to Gamund for lunch, but Fairey suspected he was actually spending time in a bar. By the fall of 1949, Porsche had a long backlog of orders and a list of would be customers who were growing increasingly frustrated. If the company was to grow, it needed to move on from its bespoke handmade assembly methods. It needed a proper factory with modern tooling and access to a larger industrial base. Fairey knew Porsche's future lay not in the remote Austrian Alps, but back in the industrial heart of Germany. But to get there, he'd have to use his company's relationship with Volkswagen. And that would stir up some unpleasant memories. Business Movers is sponsored by prizepix. Alright, let's check in on my most sports obsessed employee, James, and how the hockey season is going for him on Prizepix. He'll always be a Blackhawks fan, but he's also been watching longtime Colorado Avalanche star Mika Rantanen's performance as a newly minted Dallas star. James had predicted there'd be a bit of a learning curve before Rantanen found his groove, but a natural hat trick against his old teammates? The same feat again against the Winnipeg Peg Jets. James predicted a lot of shots on prize picks, but he may have underestimated. Prize picks is the best way to cash in while watching sports, and it's easy to add your favorite players from the ice in your Prize picks lineup, whether it's goals, points or hits. Take your pick of more or less for your shot to win up to 2000 times your cash today and you can mix and match player projections from different sports. Not a hockey fan like James? No worries. Combine your favorite players from basketball, baseball, football, esports and more. Download the app today and use Code movers to get 50 doll instantly after you play your first $5 lineup. That's code movers in the prizepick app for $50 instantly after you play your first $$5 lineup. Prize picks run your game Rakuten is the smartest way to save money when you shop because you earn cash back at over 3,500 stores. Fashion, beauty, electronics, home essentials, travel, dining, concert tickets and more. Your favorite stores like Lowe's, Levi's and Nike. Pay Rakuten to send them shoppers and rack it in, then passes on a part of that payment to its members as cash back. You're already shopping at your favorite stores, why not save while you're doing it? It's a no brainer. Membership is free and easy to sign up. Get the Rakuten app now and join the 17 million members who are already saving. Cashback rates change daily. See rakuten.com for details. That's R A K u T E n your cash back really adds up. It's a cold, CRISP afternoon in October 1949 in the Alps near the German Austrian border. Two years after Ferdinand Porsche was released from prison, 40 year old fairy Porsche walks along a hillside trail. Behind him, 50 year old Heinrich Nordhof wraps his coat tighter around him. Almost two years ago, Heinrich was appointed managing director of Volkswagen by the British occupying forces and under his watch, the Volkswagen's factory has begun producing the people's car originally designed by Ferdinand Porsche. But while Volkswagen is churning out thousands of Beetles every month, Porsche is barely getting by selling just a handful of its 356 sports car. So Ferry has invited Heinrich to join him for a short break in the Alps and an uncomfortable conversation. Heinrich cups his hands and blows into Them fairey smiles. If you think it's cold now, just wait. In a few weeks the first snow will fall. And you run a car factory in a place like this? Well, it's not easy. I still can't believe you made those beautiful cars of yours in an old sawmill. Well, for not much longer, perhaps. Oh? Why is that? Well, in fact, that's partly why I asked you here. I intend to return Portia to Stuttgart. I'm sure that's the right thing to do for your business. But I'm not sure what that has to do with me. We need to talk about my father. Heinrich glances down. You know Volkswagen is trying to distance itself from its roots. I know. And I mean no disrespect, but Herr Nordhoff, that's impossible. Volkswagen was funded by the Nazis, you'll notice. Never be able to change that. But the Volkswagen concept, that came from my father. He designed the car, he supervised the construction of the factory, and in return he signed an agreement that a royalty would be paid to Porsche for every car sold. That agreement was signed by the Nazis. It's no longer valid. Hitler's regime did many unspeakably evil things, but the Volkswagen was not one of them. I believe that Porsche is due the competition compensation in the original contract. And I believe you'll have a tough job arguing that in court. Perhaps. But I don't think it needs to come to that either. I'm sure we can come to a new arrangement. What exactly do you propose? That the royalty payments to Porsche resume. And what would we get in return? Well, our designers are the best in Europe. Porsche will provide their engineering expertise to Volkswagen and we'll commit to a long term deal to use Beetle components in our three. I don't know how much of a difference that'll make. We make 20,000 cars a year now. The parts for what, 50 Porsche sports cars is hardly much of an inducement. I intend to build far more than 50 cars a year when we're out of gammon, believe me. But this new proposal will resolve the issue cleanly. There will be no threat of legal action. No bad headlines, no breaking up the past. Royalty on every Beetle, though. Thousands raised questions as to why we're compensating. Your father, an accused war criminal. But he was cleared and released. Oh, it's a fair deal, Herr Nordhoff. It acknowledges my father's irreplaceable contribution to Volkswagen. And it allows both of our companies to move forward. Heinrich meets Ferri's gaze. He considers for a moment and then gives A nod. Very well, Herr Portia. Draft the necessary contracts, as you say, perhaps will all benefit from a clean break from the past. Fairey Porsche maintained his professional composure, but inside he felt like screaming with relief and joy. Heinrich Nordhoff had agreed to Fairey's terms, but the new contract would represent far more than just a business deal. On a cold mountainside in the Austrian Alps, Fairey had just secured Porsche's future. With the Volkswagen agreement in his pocket, Fairey Porsche finally had the secure revenue stream he needed to leave the old sawmill in Gmund and move Porsche's production to a proper factory in Stuttgart. The return to Germany presented Fairey with a new challenge, however. Porsche's original site in Stuttgart was now occupied by the U.S. army and the Americans weren't showing any sign that they were thinking of leaving most. Most of the other factories in the city had been bombed out and the only suitable location Fairey could find was already in use by the metal working company Reuter. But thankfully for Fairey, Reuter was also finding its feet after the war and was in need of cash. So Reuter's bosses agreed to rent Porsche an unused section of its factory. The two companies soon developed an even closer relationship. A deal was struck for Reuter to produce steel bodies for the the Porsche 356. And although these steel panels would be heavier than the original hand beaten aluminum bodies made in the workshop in Camund, they could be produced far more quickly. It meant that the 356 would no longer be delayed by a single craftsman's perfectionism or his long lunches. And with steel panels from Reuter and Beetles, parts shipped direct from the Volkswagen factory, production at Porsche quickly ramped up. At last the long backlog of waiting customers began began to receive their orders. And then with work at the new plant going well and sales increasing, in November 1950, Fairey Porsche paid a visit to the Volkswagen factory in Wolfsburg. It wasn't just a routine visit to his most important supplier. Fairey also brought along a special guest. His father. It was the first time that Ferdinand had stepped foot in the Volkswagen factory since the war, and the first time he'd seen it producing the Beetle at scale. As Ferdinand toured the facility with manager Heinrich Nordhof, he couldn't stop smiling. Fifteen years after Ferdinand began work on the Volkswagen, the Beetle was now a cornerstone of West Germany's economic recovery. And Ferdinand's dream of a mass market car had finally become a reality. The trip to Boltzburg came just in time. Only a few days later, Ferdinand suffered a serious stroke that left him paralyzed on one side and requiring constant nursing care. Three months later, on January 30, 1951, he died at the age of 75. With Ferdinand Porsche's death, the automotive world lost one of its pioneers. During his long career, Ferdinand's expertise had helped create some of Europe's fastest early racers and biggest selling cars. But his association with Adolf Hitler and the Nazis left behind a complex legacy. As brilliant a designer as he was, few could forget his membership in the SS or the use of slave labor in his factories. So the company that bore his name was inherited by his son Fairey, who'd been tasked with resurrecting Porsche while Ferdinand was in prison. He'd already guided the company back from the brink of destruction. Now Fairey's unique vision for Porsche would see the company speed to even determine greater success. From Wondery this is episode two of Rehabilitating Porsche for Business Movers. On the next episode, Porsche hits the headlines with a series of remarkable performances on the racetrack, but makes news for the wrong reasons when a Hollywood icon is killed behind the wheel of a high speed road car. If you like business movers, you can unlock exclusive episodes found nowhere else on Wondery and access new episodes early and ad free. Join Wondery plus in the Wondery app or on Apple Podcasts. Prime members can listen ad free on Amazon Music. And before you go, tell us about yourself by filling out a survey@wondery.com survey. If you'd like to learn more about Porsche, we recommend Porsche the Man and His Cars by Richard Von Frankenberg, Nazi Billionaires by David De Jong and we at Porsche by Fairy Portia. A quick note about our dramatizations in most cases, we can't know everything that happened, but all our reenactments are based on historical research. Business Movers is hosted, edited and executive produced by me, Lindsey Graham for Airship, Audio editing by Mohammed Shazi sound design by Molly Bogg. Our supervising sound designer is Matthew Filler. Music by Thrum this episode is written and researched by Cody Hoffmuckle, senior producer Scott Reeves. Executive producers are William Simpson for Airship and Aaron o' Flaherty, Jenny Lauer Beckman and Marshall Louie for Wondering.