Peter Schutz, Savior of the Porsche 911, Dies at 87

Peter Schutz, the Porsche AG CEO credited with saving the company’s iconic 911 sports car, died last weekend at age 87.

Schutz, an American executive, was invited by founder Ferry Porsche to become the company’s CEO in 1981. At the time, 911 sales were plunging, and the company had decided to halt production of the rear-drive car and focus on its two front-drive models, the 944 and 928.

Schutz reversed the board’s decision in his third week on the job and ordered new investments to improve the car’s quality and add variants such as the cabriolet. He also revived Porsche’s racing program.

The moves paid off. Porsche earnings surged from less than $5 million in 1982 to nearly $55 million by 1985. But Schutz’s reputation was tarnished in 1984, when he led a plan to replace the company’s franchised dealers in the U.S. with factory-owned outlets. The plan ignited a firestorm of protest, and the company hastily backed down.

Schutz was replaced as CEO in 1988 after the 1987 stock market crash in the U.S. dried up Porsche’s biggest market and forced sharp production cuts. Schutz later became a public speaker, lecturing audiences on management techniques.