Ferdinand Piëch – What Can PMs Learn from One of Germany’s Most Visionary Leaders?

When we think of exceptional business achievements, product vision, or innovation, we often consider names like Steve Jobs, Jeff Bezos, or Elon Musk. However, we tend to forget that outstanding products were created even before the digital era. One industry that has been significantly affected by the disruptive power of digital business models is the automotive sector. While terabytes and cloud services capture our imagination today, 50 years ago, it was horsepower and permanent all-wheel drive. The last great automotive pioneer might have been the Austrian-German Ferdinand Karl Piëch, who passed away in 2019 and was most recently the Chairman of the Supervisory Board at Volkswagen AG. His legacy offers lessons that can be valuable for today’s product managers, even outside of the automotive industry.

“First and foremost, I have always felt like a product person and relied on my intuition for the market.” – Ferdinand Piëch

1. Strategic Vision and Determination

Piëch was a visionary leader who always had a well-defined idea of what he wanted to accomplish, regardless of whether he was at Audi, Volkswagen, or Porsche. He wasn’t just focused on incremental improvements but on fundamentally reshaping the brands he led. His ambitious projects, like the development of the Audi Quattro or the luxury VW Phaeton, were not mere additions to the product line—they were strategic moves aimed at redefining the companies’ market positions and capabilities. These projects faced numerous technical and financial challenges, but Piëch’s unwavering commitment to his vision set him apart. He didn’t allow setbacks to derail his plans; instead, he saw them as opportunities for innovation and refinement.

For product managers, this serves as a powerful example of the importance of having a clear product vision and staying true to it, even in the face of obstacles. Whether it’s dealing with unforeseen technical issues, navigating internal resistance, or addressing market dynamics, a strong vision provides a guiding light. Piëch’s relentless pursuit of his goals shows that true product leadership isn’t just about reacting to current trends or user demands but about envisioning what the product should be and pushing the boundaries to make it a reality.

My advice to aspiring product managers is to embrace this mindset: be bold and courageous in your vision, don’t be afraid to make mistakes, and view every setback as a learning experience. Great products don’t come from playing it safe—they come from taking calculated risks, learning quickly, and adapting intelligently.

2. Technological Innovation and Quality

Ferdinand Piëch’s legacy is defined by his commitment to innovation and quality, exemplified by groundbreaking technological advancements that have profoundly influenced the automotive industry. Under his leadership, landmark innovations such as the Audi Quattro’s all-wheel drive system, the Porsche 917’s engineering prowess in motorsport, and the VW Phaeton’s ambitious foray into the luxury segment set new standards for performance and design. These achievements were not merely vehicles; they were benchmarks of engineering excellence that reshaped consumer expectations and industry norms.

Each of Piëch’s innovations reflected his deep technical expertise and relentless focus on quality. The Audi Quattro revolutionized rally racing by applying cutting-edge technology, fundamentally changing how performance vehicles were perceived. The Porsche 917, a product of Piëch’s pursuit of engineering limits, dominated at Le Mans and solidified Porsche’s status in motorsports. Although the VW Phaeton faced commercial challenges, it exemplified Piëch’s dedication to excellence, integrating luxury features and advanced engineering typically found in ultra-premium brands. His insistence on high-quality standards ensured that these products were not only competitive but also set new expectations for what consumers could demand from their vehicles.

For product managers, Piëch’s legacy offers critical insights into the importance of marrying innovation with quality. His success stemmed from a profound understanding of the products he developed; he actively engaged with engineering teams and embraced innovative solutions, even when they diverged from conventional market trends. This technical immersion allowed him to balance ambition with feasibility, ensuring that each innovation delivered a unique value proposition. Furthermore, Piëch viewed quality as integral to product strategy, emphasizing that true market success requires a continuous pursuit of improvement that elevates the user experience. Aspiring product managers should take note of his approach, understanding that true innovation goes beyond meeting specifications; it requires a commitment to excellence and a willingness to lead teams in breaking new ground.

3. Combining Engineering Expertise and Business Acumen

Piëch was not just a master engineer; he was a savvy businessman who knew how to turn technical advancements into commercial success. He understood that true product leadership requires aligning engineering innovations with business strategy and market needs.

For example, his work with the Audi Quattro wasn’t just about creating a new drivetrain; it was a strategic move that positioned Audi as a serious contender in the premium segment, differentiating it from competitors like Mercedes-Benz and BMW. Similarly, with Volkswagen, Piëch used high-end technologies to elevate the brand’s image, paving the way for future success.

For product managers, the key lesson is to balance technical focus with a strategic mindset. It’s not enough to build superior products—you need to ensure they fulfill business goals, resonate with customers, and strengthen your brand’s position in the market.

4. Decisiveness and Assertiveness

Ferdinand Piëch’s leadership was defined by his decisiveness and assertiveness, which were pivotal in navigating the complexities of the automotive industry. His no-nonsense, rigorous approach enabled him to make tough decisions quickly, whether they involved product development, internal restructuring, or strategic shifts. This decisiveness was particularly crucial in high-pressure situations, allowing him to maintain project momentum and keep teams focused on their goals, even in the face of uncertainty and challenges.

During his tenure at Volkswagen in the early 1990s, Piëch exemplified his decisive leadership style by implementing bold changes to address the company’s inefficiencies and declining market share. He did not hesitate to revamp the product strategy, streamline operations, and eliminate underperforming models, even when such decisions were unpopular. His assertiveness in pushing for ambitious projects like the VW Phaeton demonstrated how calculated risk-taking and swift decision-making could transform Volkswagen into a global automotive powerhouse, reinforcing the importance of making tough calls for long-term success.

For product managers, Piëch’s approach highlights the significance of decisiveness and assertiveness in driving innovation and achieving organizational goals. In the fast-paced world of product development, the ability to make quick, informed decisions can prevent missed opportunities and costly delays. Product managers should strive to balance boldness with strategic thinking, ensuring that their choices align with the overarching vision of the organization. By fostering a culture of accountability, as Piëch did, they can maintain high standards and keep their teams focused, ultimately enabling them to navigate complexities and remain competitive in the marketplace.

5. Taking Risks and Driving Innovation

Ferdinand Piëch’s leadership style was characterized by a profound willingness to take risks, which played a pivotal role in driving technological innovations within the automotive industry. His approach to innovation was not merely about introducing new features or designs; it was about rethinking the fundamental principles of engineering. The development of the W12 engine exemplifies this philosophy. Piëch envisioned a unique engine configuration that combined the advantages of both V8 and V12 engines, ultimately resulting in a powerful, compact solution that significantly enhanced performance across several high-end vehicles. By pushing the boundaries of conventional engine design, Piëch demonstrated that calculated risks could lead to products that not only met but exceeded market expectations, thereby solidifying the reputation of brands like Audi and Bentley as leaders in luxury performance.

The Bugatti project further illustrates Piëch’s commitment to risk-taking as a driver of innovation. When Volkswagen acquired the Bugatti brand, Piëch set an ambitious goal: to create the fastest production car in the world. This endeavor required not just financial investment but also overcoming a myriad of technical challenges, including designing a stable vehicle capable of exceeding 400 km/h while ensuring luxury and drivability. While many skeptics questioned the feasibility of such a project, Piëch’s determination to pursue this audacious vision ultimately led to the creation of the Bugatti Veyron. The Veyron not only redefined performance standards but also elevated Bugatti’s status as a symbol of automotive excellence. This project exemplifies how taking calculated risks can yield remarkable results, inspiring product managers to pursue bold initiatives that can transform their brands.

For product managers, Piëch’s approach serves as a valuable lesson in the importance of embracing calculated risks to foster innovation. In a competitive landscape, where differentiation is crucial, being willing to step outside of conventional boundaries can lead to the development of unique solutions that resonate with consumers. However, successful risk-taking should be grounded in thorough analysis and strategic alignment with the overall business goals. By identifying opportunities where innovation can create significant value and understanding the potential trade-offs involved, product managers can effectively champion new ideas and drive their teams to explore uncharted territories. Ultimately, fostering a culture of calculated risk-taking empowers teams to think creatively, experiment with new concepts, and develop products that stand out in the marketplace.

6. Focus on Talent Development and Teamwork

Ferdinand Piëch’s leadership style was deeply rooted in his recognition of the vital role that talent plays in driving organizational success. Early in his career, he understood that no innovative product could emerge without a skilled and motivated team behind it. Piëch made it a priority to not only attract top talent but also to cultivate an environment where that talent could thrive. By empowering his employees, providing them with opportunities for professional development, and fostering a culture of collaboration, Piëch ensured that each team member felt valued and capable of contributing to the company’s vision. This nurturing approach helped create a workforce that was not only highly skilled but also deeply committed to the goals of the organization.

A successful product manager can take a page from Piëch’s playbook by actively identifying and fostering the diverse talents within their team. This involves recognizing individual strengths and weaknesses and tailoring support to help each team member reach their full potential. For instance, encouraging employees to take on projects that align with their skills and interests can enhance motivation and productivity. Moreover, establishing mentorship programs or opportunities for cross-training can help team members broaden their skill sets and deepen their understanding of the product development process. By investing in talent development, product managers create a more resilient and innovative team that is equipped to tackle challenges and seize opportunities in a competitive marketplace.

Effective utilization of talent is another critical aspect of a product manager’s role. Piëch understood that bringing together a diverse group of individuals with complementary skills was essential for successful product development. Product managers should aim to create cross-functional teams that leverage various expertise—ranging from engineering and design to marketing and sales. By facilitating open communication and collaboration among team members, product managers can ensure that all voices are heard and that innovative ideas are explored. Additionally, recognizing and celebrating team achievements fosters a sense of ownership and pride in the work being done. When team members feel their contributions are meaningful, they are more likely to invest themselves in the success of the product, ultimately leading to more successful outcomes and a stronger competitive edge in the market.

7. Thinking of problem solution fit and product market fit

At Audi, Piëch faced Mercedes-Benz as the dominant player in the premium car segment. The Stuttgart-based company had long been the benchmark for quality, power, and design. Audi needed to compete on multiple fronts. One example of problem-solution fit was Piëch’s strategy to address the limited engine space in early Audi models, which couldn’t accommodate large V6 or V8 engines, by opting for turbocharged 5-cylinder engines instead. Later innovations like reducing drag coefficients to improve fuel efficiency, introducing the first fully galvanized car bodies, utilizing alloy materials, and implementing the permanent all-wheel drive system ‘quattro’ were further steps to create products with a strong market fit, enabling Audi to challenge rivals like Mercedes and BMW.

Overall, Ferdinand Piëch’s life demonstrates that a combination of technical excellence, strategic foresight, and entrepreneurial risk-taking forms the foundation for creating exceptional products and achieving long-term business success. It would be interesting to see what Piëch’s solutions to lead VW out of today’s crisis would be. On the business side it would very likely be the path of cost reductions. But would Piëch also be the very needed digital innovator at the world’s largest car manufacturer (2023)? History would suggest so. As he saw competition in Japan and Korea in the 1990′ it is likely that today it would be the EV manufacturers like Tesla or BYD.

About Ferdinand Piëch:

Ferdinand Piëch (1937–2019) was an Austrian engineer and entrepreneur considered one of the most influential figures in the automotive industry. As the grandson of Ferdinand Porsche, he significantly shaped the development of the Volkswagen Group. Piëch began his career at Porsche, where he contributed to the development of the legendary Porsche 917. Later, he moved to Audi, where he redefined the brand through innovations like the Quattro all-wheel-drive system.

As CEO and later Chairman of the Supervisory Board of Volkswagen AG, he drove the company’s expansion by integrating brands like Bentley, Lamborghini, and Bugatti into the group. His uncompromising leadership style and technical expertise helped Volkswagen become one of the world’s largest automakers. Piëch was respected for his strategic vision and commitment to perfection but was also known for his authoritarian leadership style.