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- [00:00]
Lindsey Graham
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 just before dawn on June 23, 1951 in Le Mans, France. 41 year old Fairey Porsche leans inside the engine bay of a Porsche 356. It's not often Fairey gets his hands dirty. These days he spends most of his time designing cars with a pen and paper. But later today, this 356 will make its debut in the prestigious 24 Hours of Le Mans road race. And Fairey's making a few last adjustments to fine tune its engine. All Fairey's hopes rest on this single vehicle. He'd originally intended to race three cars, but the other two have been totaled in crashes. During practice, Fairey tightens a nut and raises his head. Standing to one side in the garage is one of Porsche's drivers, Paul Vonguillon, who was behind the wheel when One of the other 356s crashed a few days ago. Fairy calls out to him. Hey Paul, could you give me a hand over here? Paul wanders over. His face is pale and he has dark bags under his eyes. What do you mean? Just jump inside and fire her up. I want to see how she's running. You sure it's worth it? What do you mean by that? Aren't we going to drop out? Why would we drop out? Well, we came here to race three cars, Fairy. Now we only have one. One car is enough. It only takes one car to win. But what about the crashes? I mean, Fairy, someone died. Yeah, that was an accident, Paul, and it could happen to anyone. You know I still believe in you, right? Paul slumps into the driver's seat. Well, I just think we're not ready for this. We're about to go up against the best teams in the world. I disagree. I think we're well prepared. Fairy, look around you. The mechanics are exhausted. We don't have enough spare parts. We don't even have enough tires. We could get knocked out of the race by nothing more than a flat. We're going to be a laughingstock, Paul. We knew this would be difficult, but we didn't anticipate losing two thirds of our team before the flag even dropped. This is Le Mans. It devours the best cars in the world. Never mind ours. Ferry slams down his spanner. Are you saying that Porsche cars are not the best in the world? Because if you Think that. What are you even doing here? No, I didn't mean it like that. Then what did you mean? I mean, maybe we should cut our losses and come back next year. There may not be a next year. This is our first appearance on the world stage. The first time a German car has raced here since the war. What kind of message does it send if we can't even make it to the start? That sends the message that we're being prudent. No, it sends a message that we're quitters. I've put too much into this. So have the designers, the workers. My father. Your father would understand that this is an impossible situation. Fairy shakes his head no. My father would expect us to see it through. He never shied away from a challenge. Ferry SLAMS down the hood. This car is going to race. Fire up the damn engine. Fairey Porsche put his reputation on the line at the 195124 Hours of Le Mans. He was determined to secure a breakthrough result. But he'd chosen one of the biggest stages of all for Porsche's international motorsport debut. And before the race even began, the team had been hit by disaster. So now, whether Ferry returned home as a champion or a punchline would come down to just one car. 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 to this podcast on some magnificent vacuum, 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 sound without having a pair of three way speakers, duct tape 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 h o k z.com stay sharp, stay open with Shokz.
- [04:59]
Max Hoffman
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- [05:33]
Lindsey Graham
From Wonder E I'm Lindsey Graham and this is Business movers. In the 1930s, Porsche was a car design firm with its eye on the mass market. Founder Ferdinand Porsche partnered with the German state to create a concept known as the Volkswagen or the People's car. But there was one major problem with Ferdinand's approach to the German government he worked for was led by Adolf Hitler and his Nazi regime dragged the world into war. Porsche rose from the ashes of the German defeat, but its rebirth was long and painful. Ferdinand and his son in law Anton Piech, were arrested and charged with war crimes over their use of forced labor during their 20 months in a French prison. Ferdinand's son Ferry took responsibility for the rehabilitation of the family business. And when Ferdinand and Anton were finally released in 1947, it was fairey who remained in the driver's seat. But when his father Ferdinand died in January 1951, Fairey was left at a crossroads. He could return to his father's founding vision for Porsche and get the company back into mass market. Economy class vehicles like the Volkswagen Beetle that way offered the potential for the greatest sales revenue and profits. Or Fairey could change gears and take Porsche down a different path. He'd stabilize the company during the difficult post war years by engineering a high speed sports car. The 356 enabled Porsche to relocate from its wartime workshop in the Austrian Alps to Germany's industrial heartland. It had put Porsche on a firm financial footing and Fairey couldn't help but feel a thrill every time the 356 took to the racetrack. So thanks to the success of the 356, Ferry began to see motorsport as more than just a hobby. It could be the route to prosperity. Competing against established giants on the world's racetracks offered Fairey the opportunity to build a brand. Events like the prestigious 24 Hours of Le Mans weren't just races, they were marketing activations. But top tier motorsport required significant investment that would divert scarce resources from production car development. It was a high stakes gamble, but while his father's passion was engineering, Fairey's was really racing. And ultimately Fairey couldn't keep away from the track. This is the third episode in our four part series on Porsche, the need for speed. It's early 1951 in the Reuter Metalworks in Stuttgart, West Germany, a few months before Porsche's debut in the 24 hours of Le Mans. Fairey Porsche stands behind a small desk in a tiny office, searching through piles of paper. Porsche rents a section of the Reuter metalworks to build its cars. But with two different vehicle manufacturers working on the same factory floor, space is at a premium. Blueprints and budget sheets cover every surface of the office. Fairey's searching for a letter. He's written to the Volkswagen factory asking for more camshafts. We know he had it this morning, but now it seems to have vanished. Fairey looks up as Albert Prinsing enters. Albert's an old school friend of Fairy's who recently joined Porsche as a finance manager. Fairy throws up his arms in exasperation. Gosh, Albert, have you seen the order for Volkswagen? What, the camshafts? Yeah, that one. For the race car prototype. I saw it here this morning. Ferry begins searching another pile of paper, but Albert puts his ledger down on top of it. Well, Ferry, that's actually why I came to see you. What, the camshafts? No, no, not the camshafts. The order in general. Costs are spiraling out of control, Fairy. We need to rein it in. You want to cut back? I do. It's clear where all the money's going. Engine modifications, lightweight bodies. Our spending on racing is going up every month and it's unsustainable. No, not, not. The racing is essential, Albert. It's how we prove our engineering. Well, I'm not sure about that. We prove our engineering by building reliable road cars that people want to buy. Demand for the 356 is already strong because of that. But how many more people will want a 356 when they see one win a race? I mean, a victory on Sunday translates to order on a Monday. Success builds reputation and reputation builds demand. Reputation can also hamper demand. What happens when Porsche finishes behind Ferrari, Aston Martin and Jaguar? What happens when all our cars break down when they crash? The negative publicity will hurt us. No one wants to buy a car that finishes last. Then we won't finish last. Our engineering sound. The cars are quick, they're reliable. We just need the resources to prepare them properly. Albert opens his ledger. Ferry, I want you to look at this. This is a list of all the funds you requested for racing before I started here. And this page is everything you've spent on racing after I started. And this page, this is just the last two weeks. Extra staff, specialized tools. It's all too much. It's an investment, Albert. Albert stares at the figures in his ledger for a long moment. Then he slowly closes the book. Fairy, it is your company. But don't say I didn't warn you. Okay? All right. But I'll remind you of this conversation when we're spraying champagne on the podium. Albert turns to leave, but he bends down and picks up a piece of paper under Fairy's desk. Ah, here's the letter you wanted. The Volkswagen camshaft order. Oh, there it is. Thanks, Albert. You know, I know you don't agree, but those new parts, these camshafts. Hell, anything we do, they might just be the difference between second place and victory. Ferry Porsche knew that motorsport was a gamble. Even the best car with the best driver was at the mercy of the weather, track conditions, mechanical failure and the performance of its rivals. But despite the risks, Fairey was confident in his new sports car. And he was prepared to bet the future of his company on speed. A few months earlier, in October 1950, Fairey Porsche had driven a Porsche 356 to Paris and proudly displayed his vehicle at the city's motor show. Fairey's intention was to raise international awareness of his sports car and woo the car enthusiasts who attended the event. But he came away from the exhibition with more than a handful of orders. He also had an invitation to race. Among the visitors to the exhibition hall was Charles Fourroux, the race Director of the 24 Hours of Le Mans. Every second weekend in June, sports car manufacturers assembled in the French town of Le Mans to race on an 8 mile circuit. Together with the Monaco Grand Prix and the Indianapolis 500, the 24 hours of Le Mans was part of motorsport's prestigious Triple Crown, and the top sports car manufacturers all vied for the title. After examining the 356 closely, Charles suggested that Fairey enter his new car at the following year's 24 Hours of Le Mans. Charles offer was a controversial one. Porsche would be the first German team to compete at Le Mans since the war. The company was still linked to Ferdinand Porsche, who had previously been arrested and charged with war crimes for use of forced labor at the Peugeot factory in occupied France. But Charles thought that by extending an invitation to Porsche, he could help the motorsport community to move on from the travails of war. Ferry accepted his offer. A strong showing at Le Mans would garner international Prestige and validate his claims that the 356 was a top sports car. But he soon discovered that the 24 hour of Le Mans was considered one of the top prizes in motorsport for a reason. It was one of the most challenging events in the world. As the name suggested, cars raced non stop for 24 hours, beginning at 4pm on Saturday afternoon and finishing at 4pm on Sunday afternoon. Competitors covered six times the distance of the Indianapolis 500 and more than 12 times the distance of the Monaco Grand Prix. Racing that long pushed cars and drivers to their limit. Fairey knew that the 356 was ill suited for for such a long test of endurance. It was powered by a modest engine sourced from the Volkswagen Beetle that allowed it to complete in the 1.1 liter class, the fourth of five tiers that were separated by engine size. But the Beetle power unit produced just 86 horsepower in a car weighing 1800 pounds. That was a recipe for overloading and overheating the engine. Fairey knew that for the 356 to have any chance of even finishing the race, he needed to cut the car's weight. Fairey's first alteration returned the 356 to its roots. Although the majority of 356s had a steel body, the first 50 cars produced in Porsche's Austrian workshop had aluminum panels. Steel made sense for road cars. It was quicker and cheaper to make, but aluminum was much lighter. So Fairey put together a special team of engineers and told them to build three custom 356s with aluminum body panels. These 356sls, or super lights, were around 400lb lighter and engineered to cut through the air more efficiently. Even the wheels had special aluminum covers to cut down on drag. Changing the body panels wasn't the only thing that Ferry did to transform the Super Lights into race cars. Although he couldn't increase engine size without moving the cars into a higher class, he could improve individual components in the engine engine. Porsche's race engineers adapted the Volkswagen Beetle's basic carburetors and camshafts. They patiently tested different setups and tuned the engine. The goal wasn't maximum horsepower, but improving the car's reliability and fuel efficiency over 24 hours. Ferry had a clear strategy. He'd use lightness and efficiency to outlast rather than outrun his competitors. When his cars were ready to race, Ferry and the Porsche team set off for France. The three Super Lights went through their first stamina test when they drove the 500 miles from Stuttgart to Le Mans. All three made it in one piece. And the racing drivers that Fairey had recruited to drive for Porsche got a chance to see how the super lights coped on the eight mile circuit. But Fairey's meticulous preparations were upended when Paul Van Guillaume took his car out on a test lap before the town's roads had been closed to the public. Paul encountered a cyclist and swerved off the road. But his car was going too fast to avoid a collision. The cyclist was killed and Paul's car was severely damaged. There was no chance that he'd be repaired in time for the race. This tragic accident sent shockwaves through the Porsche team. But things got even worse only a few days later, when Rudolf Zaurwein went off in one of the two remaining Superlights for a nighttime practice. He too lost control of the car, slid off the road and crashed. Rudolf was hospitalized and in no condition to race. Neither was his car. Suddenly, Porsche's Le Mans debut was in doubt. Two cars were out before the race even began. And many thought that the crashes were a sign that the Porsche team was out of its depth. Porsche's final car was due to be driven by Auguste Vouillet and Edmond Mouch, a pair of less experienced French drivers. With their chance of success looking slim, Paul Van Guillaume suggested that the team withdraw its final car. But Fairey refused to buckle under the pressure. The race would go on. The 24 Hours of Le Mans began on June 23, 1951. Fairey watched from the pits as the 5 liter Jaguars, Aston Martins and Talbots roared away from the start. The last remaining Porsche Superlight was vastly underpowered in comparison. But Fairey knew it wasn't really competing against those cars. It was competing against the smaller engine vehicles in its class. And over the next few hours, drivers Auguste and Edmond settled into a steady rhythm. They both drove conservatively and adhered to Fairey's race strategy. Prioritize reliability, maintain consistent lap times and minimize the time spent in the pits. And after three hours of racing, the first competitors started dropping out with mechanical malfunctions. One car had a problem with its electrics. One suffered a radiator leak. Several had problems with their engines overheating. But all the while, the Porsche Superlight hummed along its fuel efficient engine allowing longer stints between refueling its lightweight aluminum body, going easy on the tires and brakes. Fairey's race strategy was paying off. And at 4pm the following day, the Superlight crossed the finish line to complete its 210th lap. Although 18 other cars finished ahead The Superlight was in first place in its class, and it led the next car by more than four laps. Over the last eight months, Fairey had focused all his efforts on the 24 Hours of Le Mans. He'd pumped Porsche's limited resources into developing the Superlight race cars. He'd risked the company's reputation on a strong showing at the racetrack. But Ferry's decision to race was vindicated, and as sales doubled over the next 12 months, Ferry would double down on his use of racing as a marketing tool, creating Porsche's fastest car yet. But with great speed came even greater danger. 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. 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- [20:06]
Max Hoffman
Believe Domino's has never had stuffed crust pizza until now, right? Well, it's here and it's delicious. It's stuffed with melty cheese, baked with melty cheese and sprinkled with garlic seasoning and real Parmesan. Yep, that's even more cheese. Order Domino's New Parmesan Stuffed crust pizza for $10.99 each. When you mix and match two or more items, price is higher. For some locations, you must ask for this limited time offer prices, participation, delivery area and charges may vary. Delivery orders subject to local stores. Delivery charge 2 item minimum for additional terms and conditions. Domino's.com.
- [20:57]
Lindsey Graham
It'S spring 1952 in the Reuter Metal Works in Stuttgart, West Germany, one year after Porsche's debut at Le Mans Ferry. Porsche walks through the Porsche section of the factory floor, nodding at the workers assembling 356 road cars. Ever since the car's success at the 24 Hours of Le Mans, Porsche has doubled its volume of orders. Fairey pulls aside a curtain that separates one corner of the factory. And here, in a space barely large enough to fit two cars, is Porsche's research and testing department. Right Now, a disassembled 356 super light stands on a jack. Blueprints are spread across a nearby workshop bench. And senior engineer Wilhelm Hild is wiping his greasy hands on a rag. Ah, Herr Porsche. Are you here to inspect next season's competition? Carries gaze wanders to the Super Light. It's missing its body panels, its wheels and its axles. Well, I did. Doesn't look like there's much to look at at the moment. Oh, there's plenty to see. Look at this. Wilhelm leads Fairy to the rear of the car where the engine is mounted. I've stripped her down so we can see every nut and bolt. I want to find ways to take some weight off because if I can, we should see an improvement in the power to weight ratio. Fairey lays out a technical drawing on the workbench. I've been thinking about the race car myself. Jotted down a few ideas. Bilhelm leans closer to examine Fairey's design. That looks like a completely different car. It is a completely different car. I'm calling it the 550. The super light's done well, but it's just not fast enough compared to the rest of the field. We can try to shave off a few ounces here and there, but it's not ever going to make a difference. The Super Light just can't overcome the flaws in the Beetle we based it on. So we're not going to improve the Super Light, we're going to build its successor. Exactly. Starting again from scratch. And we will not be bound by the limitations of the Volkswagen. We can put the engine in the middle of the car and that gives us even better balance and handling. It'll need a completely new chassis. I know. A tubular space frame. Light and strong. Wilhelm picks up a pencil. Hey, you mind? No, go ahead. Wilhelm sketches a few rough lines over Fairey's precise technical blueprints. These axle mounts, you know, if you raise them up a bit, the car will run lower to the ground. It'll mean you'll need a firmer suspension. The aerodynamics would be better. Good. I'm hoping for every improvement we can find, but overall it's not a practical design. I mean, remember, we still started with the engine in the middle of the 356. We had to move it back to make more internal space. It doesn't matter. The 356 was a road car that races the 550. That's going to be a race car the customers can drive on the road ferry. Porsche's vision for the 550 leaned even further into the idea that success on the racetrack would drive Porsche to higher sales. And after it debuted, the 550 would gain a reputation as a giant killer by beating more established sports car manufacturers on the track. But its raw power meant that it'd be a killer on the roads, too. During the development of the 550, Porsche continued to race the 356 super lights. And they continued to win. In June 1952, Auguste Boullay and Edmond Mouche won the 1.1 liter class in the 24 Hours of Le Mans for the second year in a row. And this time, their Superlight was the 11th vehicle to finish in the overall. But Fairey was confident that the 550 would be even better. Porsche's increasingly experienced race car engineers built two prototypes of the 550. Both featured a tubular steel frame chassis with space for the engine in the middle for superior weight distribution and handling. That immediately gave the 550 an inherent advantage over the rear engine 356. And initial tests showed it would knock seconds off every lap at Le Mans. But Fairey faced a race against time to get the 550 ready for its debut. He'd set a target of entering the 195324 Hours of Le Mans. But the clock was ticking and the 550 fell behind schedule when Porsche spent several weeks moving out of the Reuter Metalworks and into its own factory on adjoining land. Trying to make up for lost time, Fairey outsourced the specialized work of building the 550s aluminum body panels. But unlike the bodywork, Fairey was determined to keep engine production in house. Porsche engineer Ernst Furman had to come up with a radical new power unit, a 1.5 liter air cooled engine. The engine he designed promised significantly more power and higher revving capabilities, essential requirements for competing at the highest levels of motorsport. But the complex design also took time to perfect. And by spring 1953, when the 550 prototypes should have been ready to make their debuts, the firm and engines were still incomplete. Fairey could either delay the launch of the 550 until it was ready, or he could find a stopgap solution. He chose the latter. Porsche placed an order for two 1.5 liter engines from Volkswagen and hurriedly inserted them into the prototype 550s. Although the purchased engines produced only 98 horsepower compared to the Furman engine's 110, they would have to do for now. Then, on May 31, 1953, the 550 made its racing debut at the Nurburgring circuit in West Germany. And despite its underpowered engine, the car raced to victory in its class. Two weeks later, two 550s took part in the 195324 Hours of Le Mans. The Porsche is streaked ahead of the other cars in the 1.5 liter class and finished 19 laps ahead of their nearest rival. The 550s even beat out all but one of the cars in the class above them. With two wins and two appearances, the 550 was a champion even without its radical new engine. But by the summer of 1953, the first four Furman power units were ready. They went inside four new 550s that were slightly altered from the original two prototypes, with side rails swept up over the rear axle shafts, allowing the entire engine and transmission to be removed from underneath the car, making maintenance far easier. The new 550s also had an improved rear suspension that increased stability, especially under braking. But this newest iteration of the 550 had a low key debut on a hill climb in July 1953. But it soon hit the headlines in November of that year when Porsche sailed four 550s across the Atlantic to take part in the world's toughest race. The Carrera Panamericana was a four day rally across Mexico. Its eight stages covered almost 2,000 miles on roads and unpaved dirt tracks. Just finishing the Carrera Panamericana was seen as an achievement to be proud of. But Fairey wanted to win, not just the race. Ever since the Ford Model T had first rolled off Production Line In 1908, the United States had been the world's biggest car market. By the 1950s, one in every two Americans owned a car. And America accounted for more than half of global car sales. That was far higher than West Germany, where only one in 15 people owned a car and less than 10% of global car sales occurred. Fairey had already dipped a toe into the American car market. The previous year, Studebaker had commissioned Porsche to design and produce a prototype four seat sedan. And during a trip to America to discuss Studebaker's design, Fairey had met with American car dealer Max Hoffman, who specialized in importing European cars. To the United States. Although Max had sold a handful of 356s to American buyers, he revealed that few Americans had heard of Porsche. Most preferred brands like Jaguar and Mercedes that were better known across the Atlantic. But Fairey knew that a successful Porsche showing in a major race on the other side of the Atlantic would be a powerful marketing tool. And he got his wish in the 1953 Carrera Panamericana. One of the original Beetle powered prototypes finished top in its class. But it was the following year's race that truly put Porsche on the map. That year, Furman powered 550s dominated. They topped their class and finished third and fourth overall, even beating competitors from the class above with vastly larger engines. And the 550s didn't just prove their speed, they also showed their reliability. Although 65 of 150 entrants failed to finish, all seven Porsches completed the race. Porsche's success at the Carrera Panamericana translated into increased sales. In 1951, before the 550 debuted, Porsche sold around 500 cars, of which less than 50 made their way across the Atlantic. By 1954, though, overall sales had quadrupled to more than 2,000 cars. And now almost half were transatlantic exports. In America, there was growing and intense demand for the brand that appeared seemingly out of nowhere to dominate the racetrack. And American importer Max Hoffman didn't just sell Porsche's primary production model, the 356. Several wealthy customers asked him for their own versions of the 550. Race Carry was happy to oblige. For about $80,000 in modern money, Porsche would provide them with a custom version of the 550 named the Spider. And since the 550 Spyder was street legal, they could drive it to and from the racetrack. But the Spider's speed made it difficult to control. Among the 80 customers who bought their own version was Hollywood actor James Dean, who took delivery of his new vehicle in March 1955. Six months later, Dean was driving through Salinas, California when he crashed head on with a Ford sedan. When Dean reached the hospital, he was pronounced dead upon arrival. After three years of success in racing and sales, Porsche had hit a major bump in the road. The death of a popular Hollywood icon behind the wheel of a 550 spyder meant that Porsche hit the headlines again. But this time for all the wrong reasons. Porsche was no longer best known for its victories on the racetrack before the mangled wreck that killed James Dean and the PR crisis that followed would threaten to overshadow everything that ferry had worked so hard to achieve. As a contractor for the nsa, Edward Snowden had access to a range of top secret government programs. But as he learned more about these clandestine operations, he came to understand a devastating secret the government was conducting mass surveillance on its own citizens. Hi, I'm Lindsey Graham, the host of Wondry show American Scandal. We bring to life some of the biggest controversies in US History. Presidential lies, environmental disasters, Corporate fraud. In our latest series, Whistleblower Edward Snowden changes the national conversation about privacy on the Internet as he risks his own freedom and his family's well being. Follow American Scandal on the Wondery app or wherever you get your podcasts. Listen to all episodes ad free and be the first to binge the newest season only on Wondery. You can join Wondery in the Wondery app, Apple Podcasts or Spotify. Start your free trial today. We know you want to delve into more stories of legendary leaders and the pivotal moments that define their careers. So now Wondery gives you exclusive episodes of Business Movers. Explore the triumphs of the retail revolution with a season about Sam Walton building a Walmart world or what it takes to be named the King of Kicks in the season becoming Nike or how the golden arches have made it to almost every corner of the world in the McDonald's Invasion season. With Wondery, you get early access to all new episodes, ad free listening and exclusive access to more true stories of business leaders who risked it all. Wondry members also get exclusive ad free access to hundreds of other chart topping podcasts like American Scandal, History Daily and Business Wars. Elevate your business movers experience with Wondery. Sign up by clicking the link in the episode description or head over to wondery.com/ it's early October 1955 at the Porsche factory in Stuttgart, a few days after the death of Hollywood actor James Dean. Fairy Porsche puts down his pen and picks up the telephone on the corner of his desk. Hello, Ferry here. Ferry. They're calling the spider a killer car. Now Ferry recognizes the voice of Max Hoffman, the car dealer who imports Porsche vehicles to the United States. Although Max was born in Austria, he moved to America when he was still a child. And now he speaks German with an American twang. Fairy's heard this distinctive accent plenty over the last few days, because the death of James Dean has Max spooked. Oh Max, it's good to speak to you again. I take it they're still reporting on the crash over there? Still reporting on it, Fairy. It's the only thing they're reporting on every newspaper, every radio station. They all lead with James Dean being killed in a Porsche Spider. They're saying the car's cursed. It could ruin us over here. Oh, Max, calm down. I'm sure it's not that bad. No. Well, I don't think I can sell these things now. Who wants the car that killed James Dean? Why do we tell people? Very well. Probably the truth. It was a tragic road accident. I mean, there are thousands of those every day. But they blame the car. We need to issue a statement. Something about safety. No, no, no. Absolutely not. Porsche will make no official statement. But, Fairy, you have to reassure people. Reassure them of what, though, Max? That our car is safe. It is. It's engineered to the highest standards. This was driver error, Max. Or maybe just bad luck. But it was definitely not the fault of the car. But the American public needs something. I need something. All right. We continue to emphasize our engineering. We'll highlight our racing successes. These things prove Porsche's reliability under extreme stress. But we don't talk about this single incident. So we just stick our heads in the sand and hope it blows over. No, we're not going to run from anything. We're going to project confidence and stand by our product. All right. God. No statement. I hope you're right. Because if the American market turns sour on us, it won't. Just stay focused on our strengths and we'll weather this storm. You know, Fairy, this kind of thing, they can take a brand down in America. I don't think you understand. We love our movie stars over here. Yeah, apparently so. But your movie stars love Porsches, right? And I don't think that's gonna change. After ending this call, Fairy. Portia sat back and let out a slow breath. He was more worried than he let on. To Max Hoffman, the Spider was going up against the ghost of James Dean. And Portia hadn't dealt with with a public relations crisis this large before. But Ferry felt that drawing more attention to the crash was the worst thing to do. Instead, he stuck by his gut. He'd fasten his seatbelt and ride out the negative publicity. But the road ahead would soon take an unexpected turn. James Dean died just as Americans were beginning to focus more on road safety. At the start of the 1950s, an average of 38,000 people were killed on the country's roads every year. President Dwight D. Eisenhower had launched America's first Safe driving day in December 1954, in which he challenged the country's drivers to go 24 hours with no crashes. That unrealistic challenge went unmet. 51 people were killed in traffic accidents on that day. And now James Dean was the highest profile victim of a road traffic accident that Americans had ever known. In the immediate aftermath of Dean's death, news reports spent days going over the grisly details. They focused on the high speed sports car that Dean was driving, speculating that the 550 spyder was too fast to control and too dangerous to drive. But Ferry, Porsche's strategy to ride out the PR crisis soon paid off. By refusing to release a statement about Dean's crash. Ferry didn't add any fuel to the fire and the media feeding frenzy soon moved on. Reporters focused their attention back on the wider road safety debate. And after the initial emotional reaction had abated, experts agreed that Dean's death wasn't an isolated incident caused by a single high speed sports car. It was part of a larger pattern of crashes caused by poor driving standards. Porsche's reputation was even defended by an unlikely figure, James Dean himself. A few days before the crash that killed him, Dean had been interviewed by broadcaster Gig Young about road safety. In it, Dean claimed that American roads were not dangerous because of the speed of the cars on them, but because of the standards of their drivers. Jimmy, we probably have a great many young people watching our show tonight, and for their benefit, I'd like your opinion about fast driving on the highway. Do you think it's a good idea? Good point. I, I used to fly around quite a bit, you know, I took a lot of unnecessary chances on the highways and I started racing and now I drive on the highways. I'm extra cautious because no one knows what they're doing. Half the time you don't know what this guy's gonna do with that one. And once reporters stopped blaming Porsche for Dean's death, importer Max Hoffman anxiously waited to see what impact the crash would have on the sales. When the next set of figures came in, Max got an unexpected surprise. Demand for Porsche cars hadn't decreased. It gone up. In the year after Dean's death, sales increased 25%. Compared to the previous 12 months. Porsche had not been hurt by James Dean's fatal crash. It had seemed to have benefited. Dean's choice of vehicle imbued the Porsche brand with an edgy, glamorous mystique. Thrill seekers were attracted by Porsche's association with Dean, whose early death transformed him into a symbol of eternal youth and rebellion. And America wasn't the only market in which Porsche was growing. Global sales reached 5,000 units for the first time in the five years since Ferdinand Porsche had died. The company he'd founded had hit new heights under his son. Fairey had seen sales increase tenfold. And it was all thanks to his radical decision to speak steer Porsche down a different road. His father Ferdinand's vision for Porsche had been as a mass market car. But Fairey's need for speed had transformed the company into a sports car manufacturer. And soon Fairey would shift even further from his father's original vision. Porsche's core product, the 356, traced its design back to Ferdinand's pre war Volkswagen. Its platform had limitations in terms of space, refinement and future performance potential. But the limited edition 550 Spyder had proven that Porsche could create its own cars from the ground up. And soon Porsche would begin working on its next product, a high performance road car that would inherit the mantle from the 356. This next generation Porsche would need more power, greater comfort and a modern design reflecting the company's growing sophistication and ambition. It would take years before this new car emerged from the Porsche factory. But when it did, the Porsche 911 would define the brand for decades to come. From Wonder Eat this is episode three of Rehabilitating Porsche for Business Movers. On the next episode, Porsche enters a golden age with the launch of its most iconic car. But Ferry Porsche faces another debate over his vision for the company when a car buyer's focus shifts from acceleration to efficiency. 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 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. Excellence was expected by Carl Ludwigsen, Nazi Billionaires by David De Jong and we at Porsche by Ferry Porsche. 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, Lindsay Graham for Airship. Audio editing by Mohamed Shazi Sound design by Molly Bach. Our supervising sound designer is Matthew Filler. Music by Thrum. This episode is written and researched by Cody Hoffmuckle Senior producer Scott Reeve. Executive producers are William Simpson for Airship and Aaron o' Flaherty, Jenny Lauer Beckman and Marshall Louie for Wondering.
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Nick and Jack
This is Nick and this is Jack. We're best friends, ex finance guys and resident 90s experts. And every week on our podcast, the Best Idea yet, we're bringing you the untold stories behind your favorite products. For instance, can you guess which billion dollar fashion company went viral thanks to a rhinestone covered tracksuit? Or which cartoon turned four turtles into a global toy empire by accident? It started as a joke. Last one which cold beverage was so hated by Starbucks they actually ended up acquiring it? Spoiler the Frappuccino. Howard Schultz apparently thought cold coffee was super lame and then he bought it. From Teenage Mutant Ninja Turtles to Juicy Couture to the Orange Mocha Frappuccino, Join us every week to learn how your favorite things got made. Follow the Best Idea yet on the Wondery app or wherever you get your podcasts. And you can listen early and ad free right now by joining Wondery. And if this podcast lasts longer than 45 minutes, call your doctor.