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914 Porsche History
By the late 1960's, both Volkswagen and Porsche were in need of new models, Porsche was looking for a replacement for their entry-level 912, and Volkswagen wanted a new range-topping sports coupe to replace the Karmann Ghia. At the time, the majority of Volkswagen's developmental work was handled by Porsche, part of a setup that dated back to Porsche's founding. Volkswagen needed to contract out one last project to Porsche to fulfill the contract, and decided to make this that project. Ferdinand Piëch, who was in charge of research and development at Porsche, was put in charge of the 914 project.
Originally intending to sell the vehicle with a flat four-cylinder engine as a Volkswagen and with a flat six-cylinder engine as a Porsche, Porsche decided during development that having Volkswagen and Porsche models sharing the same body would be risky for business in the American market, and convinced Volkswagen to allow them to sell both versions as Porsches in North America.
It appeared to be a perfect win-win situation.
On March 1, 1968, the first 914 prototype was presented. However, development became complicated after the death of Volkswagen's chairman, Heinz Nordhoff, on April 12, 1968. His successor, Kurt Lotz, was not connected with the Porsche dynasty and the verbal agreement between Volkswagen and Porsche fell apart.
In Lotz's opinion, Volkswagen had all rights to the model, and no incentive to share it with Porsche if they would not share in tooling expenses. With this decision, the price and marketing concept for the 914 had failed before production had even begun. As a result, the price of the chassis went up considerably, and the 914/6 ended up costing only a bit less than the 911T, Porsche's next lowest price car. This had a serious effect on sales, and the 914/6 sold quite poorly. In contrast, the much less expensive 914-4 became Porsche's top seller during its model run, outselling the 911 by a wide margin, with over 118,000 units sold worldwide.