By the late 1960s, both Volkswagen and Porsche needed new models. Porsche sought a replacement for the 912, while Volkswagen wanted a new range-topping sports coupé to supersede the Volkswagen Type 34 Karmann Ghia coupé. Most of Volkswagen’s development work was handled by Porsche as part of a long-standing agreement dating back to Porsche’s founding. Volkswagen needed to contract one last project to Porsche to fulfill the contract, and decided the 914 would be that project. Ferdinand Piëch, head of research and development at Porsche, was put in charge of the 914 project.
In 1966 and 1967, German company Gugelot Design GmbH presented a sports coupe design developed in partnership with Bayer to several car builders, including Volkswagen and Porsche. Some sources suggest this design formed the basis for the 914, intended to appeal to both Volkswagen and Porsche without closely resembling either’s existing products. Later sources, however, assert the 914 design was done in-house at Porsche, primarily the work of body engineer Heinrich Klie. Originally, the plan was to sell a flat-four version as a Volkswagen and a flat-six version as a Porsche, but Porsche convinced Volkswagen to allow them to sell both versions as Porsches in North America. The first 914 prototype was presented on March 1, 1968.
Development became complicated after the death of Volkswagen’s chairman, Heinrich 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. Lotz believed Volkswagen had all rights to the model and no incentive to share it with Porsche, leading to increased chassis costs and the 914/6 ending up costing almost as much as the 911T. The 914 was Motor Trend’s Import Car of the Year for 1970. Slow sales and rising costs prompted Porsche to discontinue the 914/6 variant in 1972, after producing 3,351 of them. Production of the 914 ended in 1976, with the 2.0 L flat-4 engine continuing in the 912E until the front-engined four-cylinder 924 was introduced the following year.
In 1973, the discontinued 914/6 was replaced by a variant powered by a new 100 bhp 2.0 L, fuel-injected version of Volkswagen's Type 4 engine. For 1974, the 1.7 L engine was replaced by an 85 bhp 1.8 L engine, and the Bosch L-Jetronic fuel injection system was added to American units to help with emissions control. The Porsche 914 also served as Formula One’s first safety car, deployed at the 1973 Canadian Grand Prix to manage a race affected by treacherous weather conditions.
Several customized and prototype 914s were produced. In 1970, the Heuliez Murène, a 914-based concept car with a redesigned body, was displayed at the Paris Auto Show. A factory prototype 914/6 surfaced in the US in 2001, alongside a surviving prototype Sportomatic 914/6 in Germany. A businessman, Werner Bernhard Heiderich, commissioned Pietro Frua to create a custom body for a 914, resulting in the Hispano Alemán Vizcaya, first shown at the 1971 Geneva Motor Show. In 1973, General Motors built the Corvette XP-897GT concept car on a shortened 914/6 chassis to showcase their rotary engine technology.
Volkswagen versions originally featured the fuel-injected 1.7 L VW Type 4 flat-four engine producing 80 bhp. Porsche’s 914/6 variant featured the 2.0 L air-cooled Type 901/3 flat-six engine from the 1967–1969 911T, producing 110 bhp. All engines were mid-mounted, paired with a version of the 1969 911’s “901” gearbox. Karmann manufactured the rolling chassis, completing Volkswagen production in-house or delivering versions to Porsche for final assembly. The 914/6 models had lower gear ratios, larger brakes, five-lug wheels, and an ignition on the left side of the steering wheel. Over the seven model years, Porsche made changes including cosmetic alterations and adjustments to meet evolving crash protection standards. From 1970 to 1972, bumpers were chrome or painted; in 1973, bumper guards were added, and in 1975 and 1976, heavy, rubber-covered bumpers were introduced. Headlight surrounds changed from white to black in 1973, and interior features evolved over time. The introduction of anti-roll bars and a shift from “tail shifter” to “side shifter” gearboxes in 1973 significantly improved handling.