Peter W. Schutz
Encyclopedia
Peter W. Schutz was the president and CEO of Porsche
between 1981 and 1986, a time in which the company greatly expanded sales, primarily in the United States
. Today he is a motivational speaker
and co-founder of Harris and Schutz Inc., with his wife Sheila Harris-Schutz.
.
After graduation, Schutz worked as an engineer at Caterpillar Tractor
in Peoria, Illinois
for 15 years. He left Caterpillar for Cummins Engine, where he served 11 years, initially in corporate strategic planning, and then 8 years as Vice President responsible for sales and service of truck engines in the U.S. and Canada. During this time he worked with freight hauling companies to improve their profitability, instituting driver performance measures. Profits surged, and the Teamsters
invited Schutz to speak at their 1976 convention. When Cummins management questioned his decision to accept the appearance, he left the company. In 1978 he took over the Deutz Engine Division of Klöckner-Humboldt-Deutz
.
and 928
. Porsche removed long-time CEO Ernst Fuhrmann
and started looking for a replacement. Ferry Porsche
personally invited Schutz to apply as one of 12 potential candidates for the position. Porsche told Schutz that the company was simply not working as a unit, and needed someone to bring the various divisions together. Although it was never specifically stated, it was widely believed that Schutz was selected in order to have an American running the company to re-ignite sales in the U.S.
Schutz responded to the challenges rapidly. Dealers complained that the prices were too high and the cars had constant quality control problems; Schutz decided the former was only a problem due to the latter. Asking the automobile division, he found that a simple problem with the drive chain for the camshaft
s was the cause for many of these complaints. When he asked why the problem had not been fixed, he was told that there was no reason to do so; the 911 was ending production in favor of the 924 and 928.
Cancellation of the 911 was also causing low morale in the engineering department, where the 911 was seen as the quintessential Porsche. While sitting in the office of Helmuth Bott, chief of engineering, he noticed a chart that showed the evolution of the 924, 928 and 911 on the wall. The line for the 911 stopped at the end of 1981. Schutz picked up a marker, extended the 911's line off the end of the chart onto the wall, and told Bott to make it happen. In the meantime he had the camshaft and other minor fixes implemented, quickly ending the quality control issues.
Meanwhile the Porsche racing team was in the process of entering 24 Hours of Le Mans
with modified 928's, which they stated had no hope of winning. Schutz said that they were either going to the race with the intention of winning, or not going at all. The engineers responded by pulling three 936
's from museum displays, equipping them with experimental engines developed for Indy Car
racing, and winning the race. This was followed by the 956
that dominated Le Mans in 1982 and Nürburgring
in 1983, and the all-wheel-drive 953
, which won the Paris-Dakar Rally in 1984 and 1986.
Under Schutz's new orders, Bott started process of dramatically improving the 911. The result was the 3.2 litre third-generation Carrera series of 1984. He also used the new 911 engine as the basis for an aircraft engine
, the ill-fated Porsche PFM 3200
. Racing success, improved models and, most importantly, a strong U.S. economy and exchange rate all fed into ever-increasing sales through the mid-1980s. During the Schutz tenure, Porsche worldwide sales grew from 28,000 units in 1980-81 to a peak of 53,000 units in 1986.
When the U.S. economy suffered a major downturn in 1987, coupled with a dramatic drop in the US-German exchange rate, U.S. street prices of the Porsche lineup increased dramatically. Production for all models dropped to 48,520 cars and U.S. sales, earlier making up over 60% of Porsche sales, dropped to under half of output. In December, Porsche announced that Schutz was being replaced by Heinz Branitzki.
Porsche
Porsche Automobil Holding SE, usually shortened to Porsche SE a Societas Europaea or European Public Company, is a German based holding company with investments in the automotive industry....
between 1981 and 1986, a time in which the company greatly expanded sales, primarily in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Today he is a motivational speaker
Motivational speaker
A motivational speaker or inspirational speaker is a speaker who makes speeches intended to motivate or inspire an audience. In a business context, they are employed to communicate company strategy with clarity and help employees to see the future in a positive light and inspire workers to pull...
and co-founder of Harris and Schutz Inc., with his wife Sheila Harris-Schutz.
Early life and career
Peter Schutz was born to Jewish parents in Berlin, Germany. The rise of the Nazi party led to the family fleeing to Havana, Cuba in 1937. In March 1939 they emigrated to Chicago, Illinois. Schutz grew up in Chicago, and received a BS degree in Mechanical Engineering from the Illinois Institute of TechnologyIllinois Institute of Technology
Illinois Institute of Technology, commonly called Illinois Tech or IIT, is a private Ph.D.-granting university located in Chicago, Illinois, with programs in engineering, science, psychology, architecture, business, communications, industrial technology, information technology, design, and law...
.
After graduation, Schutz worked as an engineer at Caterpillar Tractor
Caterpillar Inc.
Caterpillar Inc. , also known as "CAT", designs, manufactures, markets and sells machinery and engines and sells financial products and insurance to customers via a worldwide dealer network. Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas...
in Peoria, Illinois
Peoria, Illinois
Peoria is the largest city on the Illinois River and the county seat of Peoria County, Illinois, in the United States. It is named after the Peoria tribe. As of the 2010 census, the city was the seventh-most populated in Illinois, with a population of 115,007, and is the third-most populated...
for 15 years. He left Caterpillar for Cummins Engine, where he served 11 years, initially in corporate strategic planning, and then 8 years as Vice President responsible for sales and service of truck engines in the U.S. and Canada. During this time he worked with freight hauling companies to improve their profitability, instituting driver performance measures. Profits surged, and the Teamsters
Teamsters
The International Brotherhood of Teamsters is a labor union in the United States and Canada. Formed in 1903 by the merger of several local and regional locals of teamsters, the union now represents a diverse membership of blue-collar and professional workers in both the public and private sectors....
invited Schutz to speak at their 1976 convention. When Cummins management questioned his decision to accept the appearance, he left the company. In 1978 he took over the Deutz Engine Division of Klöckner-Humboldt-Deutz
Deutz AG
Deutz AG is an engine manufacturer, based in Cologne, Germany.-History:The company was founded by Nikolaus Otto, inventor of the four-stroke internal combustion engine, in 1864 as N. A...
.
Porsche years
In 1980 Porsche suffered its first money-losing year in history, much of the problem due to falling sales in the U.S. and lackluster takeup of their new designs, the 924Porsche 924
The Porsche 924 is an automobile produced by Porsche AG of Germany from 1976 to 1988. A two-door, 2+2 coupé, the 924 replaced the 914 as the company's entry-level model, and was the model that finally retired the 912. In production terms, the 924 was the first Porsche model powered by a...
and 928
Porsche 928
The Porsche 928 was a sports-GT car sold by Porsche AG of Germany from 1978 to 1995. Originally intended to replace the company's iconic 911, the 928 attempted to combine the power, poise, and handling of a sports car with the refinement, comfort, and equipment of a luxury sedan to create what some...
. Porsche removed long-time CEO Ernst Fuhrmann
Ernst Fuhrmann
Dr Ernst Fuhrmann was the chairman of Porsche AG between 1972 and 1980. He was a German citizen....
and started looking for a replacement. Ferry Porsche
Ferdinand Anton Ernst Porsche
Ferdinand Anton Ernst Porsche , mainly known as Ferry Porsche, was an Austrian technical automobile designer and automaker-entrepreneur. He operated Porsche AG in Stuttgart, Germany. His father, Ferdinand Porsche Sr was also a renowned automobile engineer. His nephew, Dr...
personally invited Schutz to apply as one of 12 potential candidates for the position. Porsche told Schutz that the company was simply not working as a unit, and needed someone to bring the various divisions together. Although it was never specifically stated, it was widely believed that Schutz was selected in order to have an American running the company to re-ignite sales in the U.S.
Schutz responded to the challenges rapidly. Dealers complained that the prices were too high and the cars had constant quality control problems; Schutz decided the former was only a problem due to the latter. Asking the automobile division, he found that a simple problem with the drive chain for the camshaft
Camshaft
A camshaft is a shaft to which a cam is fastened or of which a cam forms an integral part.-History:An early cam was built into Hellenistic water-driven automata from the 3rd century BC. The camshaft was later described in Iraq by Al-Jazari in 1206. He employed it as part of his automata,...
s was the cause for many of these complaints. When he asked why the problem had not been fixed, he was told that there was no reason to do so; the 911 was ending production in favor of the 924 and 928.
Cancellation of the 911 was also causing low morale in the engineering department, where the 911 was seen as the quintessential Porsche. While sitting in the office of Helmuth Bott, chief of engineering, he noticed a chart that showed the evolution of the 924, 928 and 911 on the wall. The line for the 911 stopped at the end of 1981. Schutz picked up a marker, extended the 911's line off the end of the chart onto the wall, and told Bott to make it happen. In the meantime he had the camshaft and other minor fixes implemented, quickly ending the quality control issues.
Meanwhile the Porsche racing team was in the process of entering 24 Hours of Le Mans
24 Hours of Le Mans
The 24 Hours of Le Mans is the world's oldest sports car race in endurance racing, held annually since near the town of Le Mans, France. Commonly known as the Grand Prix of Endurance and Efficiency, race teams have to balance speed against the cars' ability to run for 24 hours without sustaining...
with modified 928's, which they stated had no hope of winning. Schutz said that they were either going to the race with the intention of winning, or not going at all. The engineers responded by pulling three 936
Porsche 936
The Porsche 936 was a racing car introduced in 1976 by Porsche as a delayed successor to the Porsche 908, a three litre sportscar prototype which was retired by the factory after 1971...
's from museum displays, equipping them with experimental engines developed for Indy Car
American Championship Car Racing
Since 1916 there has been a recognized United States national automobile racing National Championship for drivers of professional-level, single-seat open wheel race cars. The championship has been under the auspices of several different sanctioning bodies since 1909. Since 1911, the Indianapolis...
racing, and winning the race. This was followed by the 956
Porsche 956
The Porsche 956 was a Group C sports-prototype racing car designed by Norbert Singer and built by Porsche in 1982 for the FIA World Sportscar Championship...
that dominated Le Mans in 1982 and Nürburgring
Nürburgring
The Nürburgring is a motorsport complex around the village of Nürburg, Germany. It features a modern Grand Prix race track built in 1984, and a much longer old North loop track which was built in the 1920s around the village and medieval castle of Nürburg in the Eifel mountains. It is located about...
in 1983, and the all-wheel-drive 953
Porsche 953
The Porsche 953 was a heavily modified variant of the 911, designed and built specifically to compete in the 1984 Paris–Dakar Rally. It was a short lived model, as it was replaced in 1985 by the 959. It is sometimes referred to as the 911 4x4, as it used the developmental, manually controlled...
, which won the Paris-Dakar Rally in 1984 and 1986.
Under Schutz's new orders, Bott started process of dramatically improving the 911. The result was the 3.2 litre third-generation Carrera series of 1984. He also used the new 911 engine as the basis for an aircraft engine
Aircraft engine
An aircraft engine is the component of the propulsion system for an aircraft that generates mechanical power. Aircraft engines are almost always either lightweight piston engines or gas turbines...
, the ill-fated Porsche PFM 3200
Porsche PFM 3200
Porsche's PFM 3200 was a six-cylinder horizontally opposed air-cooled aircraft engine developed from their air-cooled line of automobile engines from the famous Porsche 911 sports car...
. Racing success, improved models and, most importantly, a strong U.S. economy and exchange rate all fed into ever-increasing sales through the mid-1980s. During the Schutz tenure, Porsche worldwide sales grew from 28,000 units in 1980-81 to a peak of 53,000 units in 1986.
When the U.S. economy suffered a major downturn in 1987, coupled with a dramatic drop in the US-German exchange rate, U.S. street prices of the Porsche lineup increased dramatically. Production for all models dropped to 48,520 cars and U.S. sales, earlier making up over 60% of Porsche sales, dropped to under half of output. In December, Porsche announced that Schutz was being replaced by Heinz Branitzki.