In 1992 Porsche lost $138 million and was thought to be a takeover target. The CEO Wendelin Wiedeking decided then to streamline its management structure, cut the work force by 20 percent and adopt Japan's 'lean manufacturing' system, which features small assembly teams and no excess inventory. Porsche also took a hard look at its products. The firm revamped the classic 911 and, this year, hatched a slick, two-seat roadster called the Boxster.

Following the new market strategy, Porsche is branching away from its core customers - wealthy, graying males with a need for speed and is eying younger, less affluent buyers. The Boxster, for example, is not quite as macho as the 911.

Adapted from Newsweek