The first Porsche, the Porsche 64 from 1938 , used many components from the Volkswagen Beetle . The second Porsche model, the Porsche 356 sports car of 1948 , was initially built in Gmünd, Austria , where the company was evacuated to during war times, but after building 49 cars the company relocated back to Zuffenhausen. Many people regard the 356 as the first Porsche simply because it was the first model sold by the fledgling company. Ferdinand Porsche worked with his son Ferry Porsche in designing the 356 but died soon after the first prototype was built. Again, the car used components from the Beetle including its engine , gearbox and suspension . However, the 356 had several evolutions while in production and many VW parts were replaced by Porsche-made parts. The last 356s were powered by 100% Porsche designed engines. The sleek bodywork was designed by Erwin Komenda who had also designed the body of the Beetle.

In 1963 , after some success in motor-racing (namely with the Porsche 550 Spyder), the company launched the Porsche 911 , another air-cooled, rear-engined sports car, this time with a 6-cylinder "boxer" engine . The car, which is still in production, has become their most well-known model, successful on the race-track, in rallies , and in terms of sales. Far more than any other model, the Porsche brand is defined by the 911. A cost-reduced model with the same body but 356-derived running gear (including its four-cylinder engine) was sold as the 912.

The company has always had a close relationship with Volkswagen , and as already mentioned, the first Porsche cars used many Volkswagen components. The two companies collaborated in 1969 to make the VW-Porsche 914 and 914-6 , in 1976 with the Porsche 924 , which used many Audi components and was built at an Audi Neckarsulm factory. Most 944 were also done there even though they use lot less VW components. The Porsche Cayenne , introduced in 2002 , shares the entire body with VW Touareg , which are built at the Škoda factory in Bratislava . Both Audi and Škoda are wholly-owned subsidiaries of VW .Ferdinand Porsche's grandson, Ferdinand Piëch , was chairman and CEO of the Volkswagen Group from 1993 to 2002 . With half of all voting shares, he also remains the largest individual shareholder of Porsche AG.

Porsche's 2002 introduction of the Cayenne also marked the unveiling of a new production facility in Leipzig , Saxony , which today accounts for nearly half of Porsche's annual output.In 2004 , production of the Porsche Carrera GT commenced in Leipzig, and at EUR 450,000.00 it is the most expensive production model Porsche ever built.As of 2005 , the extended Porsche and Piech families controlled all of Porsche AG's voting shares. In early October 2005 the company announced acquisition of an 18.53% stake in Volkswagen AG and disclosed intentions to acquire additional VW shares in the future.