Porsche India’s Former Distributer Drags Company To Court


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German luxury car maker Porsche's distribution in India has run into problems with its former partner Precision Cars India dragging the company to court opposing the appointment of Volkswagen Group Sales India as the sole importer.

While Porsche India has issued public notices stating that Volkswagen Group Sales India is the sole importer of Porsche vehicles and asking customers not to deal with any other entities, Precision Cars India (PCI) is contesting it saying Porsche's act was a breach of contract.

When contacted, a spokesperson for PCI said: "Precision Cars India Pvt Ltd has initiated proceedings before jurisdiction forums against illegal and actions in breach of contract taken by the manufacturers."

He declined to share details and comment further on the public notice by Porsche India, which specified three dealers in Mumbai, Gurgaon and Chandigarh as the only official Porsche dealerships in India, saying "the matter is subjudice".

Calls made to Porsche Managing Director Middle East and Africa George Wills remained unanswered.

A spokesperson of Volkswagen Group India also said the VW group did not want to add anything more to the public notice.

"We request members of the public not to deal with any person(s)/entities apart from those expressly mentioned above (the three dealers) for sales or service relating to the Porsche brand vehicles in the Republic of India," the public notice said.

Earlier in April this year, Porsche had announced Volkswagen Group Sales India as the official importer of all Porsche cars into India saying it was anticipating further positive sales growth across its range in India.

Prior to this, Porsche had started selling cars in India through PCI, which was appointed as the exclusive distributor, in 2007 with the opening of two showrooms in Delhi and Mumbai.

Since then, PCI had expanded Porsche dealerships through franchise route to seven cities, including Ahmedabad, Chandigarh, Bangalore, Chennai and Hyderabad.

Yesterday, Volkswagen AG had reached an agreement to acquire the remaining 50 per cent stake in Porsche by early next month.

Under the deal, Volkswagen, which owns 49.9 per cent of Porsche, would acquire the remaining 50.1 per cent stake. It would pay 4.46 billion euros (USD 5.6 billion) in cash, plus one ordinary share in Volkswagen to acquire the stake.

A merger was agreed to in 2009 after Porsche's disastrous takeover bid for VW failed and left the sports car maker with huge debt. The two companies had agreed in August 2009 to merge by the end of 2011 but has since faced legal and tax hurdles.
 
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well what was breach of contract? hope PCI knew they are not gonna deal with porsche already. what happened to this case now!
 
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Re: Porsche India’s Former Distributer Drags Company To Court

Porsche India announces appointment of six official dealers and new pricing structure

With the appointment of six dealers across the country and finalization of prices the Porsche model range is now available in India. Porsche India’s retail operations have commenced with six dealers in the cities of Ahmedabad, Bengaluru, Chandigarh, Gurgaon, Kolkata and Mumbai. The new business partners have started work on state-of-the-art facilities which will become operational in 2013 and provide customers with an unparalleled experience.
In the interim, all dealers accept vehicle orders for the Porsche range and will start delivering first units to customers soon. Service requests are handled professionally from temporary facilities at all six dealerships until the new Porsche Centres will be opened. Anil Reddi, Director at Porsche India, says: “Since our business establishment in April, we have been working hard to develop the basic dealer network. With the appointment of six dealers in less than four months, I am pleased to say that this has been one of the fastest business ramp ups in the luxury automotive sector. And, I must add, we have more planned for this year.”

To serve customers with maximum convenience, all new dealerships will feature fully-equipped service facilities. Going one step further Porsche India has also set up an in-house team of specifically trained and fully mobile technicians who go out to support aftersales colleagues and meet with customers.

As part of the brand’s re-launch, Porsche India announced a new pricing structure for the entire model range starting at Rs 61.4 lakh ex-showroom Maharashtra for the Cayenne SUV. The diesel-engined Cayenne starts at Rs 68.3 lakh while the basic retail price of the Panamera Diesel is Rs 99.0 lakh ex-showroom Maharashtra. Porsche India will focus very strongly on sports cars with the iconic 911 priced at Rs 1.12 Crore and the new mid-engined Boxster S selling for Rs 80.24 lakh, both ex-showroom Maharashtra. The 911 and Boxster are all-new models, deliveries of which will commence shortly in India.

“The new business set-up allowed us to rework the pricing for the entire model range and we are certain that our discerning customers will be pleased with the result”, says Reddi. “Our dealers are seeing very strong enquiries for the Cayenne Diesel and the Panamera range. With the 3.0-litre V6 diesel engine and a basic retail price of under Rs 1 Crore, the Panamera will revive the dormant luxury car segment and offer customers a uniquely styled, lavishly equipped and decidedly sportier option.”

Porsche India announces appointment of six official dealers and new pricing structure | WheelsUnplugged
 
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Porsche India breaks monthly delivery record

Porsche India, the new official importer of Porsche cars has started off its retail operations with a record setting month.

The company officially started the delivery of cars in India (previously the Porsches were imported by Precision Cars India ltd.) on the 1st of October.

The Stuttgart based company clocked 117 deliveries for the month and in the process surpassed the previous record of top monthly sales in the sub-continent.

Anil Reddi, Director of Porsche India, stated: “It has been a very exciting past six months for us at Porsche India and we are thrilled with the pace of our network expansion and new model launches in the country.”

Commenting on the model line-up, Mr. Reddi added, “I am pleased to announce the arrival of the new 911 Carrera, the seventh generation of this sports car icon, as well as the new Boxster S which was unveiled globally earlier this year.”

The new Porsche 911 Carrera is available with the world’s first 7 speed manual gearbox or the 7-speed PDK. The legendary sports car could be yours for Rs. 1.14 Cr while the range topping 400 bhp 911 Carrera will set you back by Rs. 1.33 Cr.

The new Boxter S is powered by a 3.4 litre 6 cylinder mid mounted engine which belts out 315 bhp. The soft top convertible retails at Rs. 81.72 lakhs, all prices ex-showroom Delhi.


Read more: Porsche India breaks monthly delivery record
 
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Jaipur court issues arrest warrants against Porsche AG CEO and 8 board members

A Jaipur court has issued arrest warrants against Mr. Matthias Mueller, global CEO of Porsche and eight other board members in relation to a criminal case filed by Precision Cars India, the former official importer of Porsche sports cars.

Obeying court orders which was dated November 5, 2012, the local police and CBI have reportedly sorted the help of Interpol since the persons concerned were based in Germany and UAE.

Precision Cars India has filed criminal charges against the iconic German sports car maker which include cheating, extortion, dishonestly inducing delivery of property, criminal breach of trust and criminal conspiracy. Porsche India is yet to comment on the matter.
The unpleasant case was triggered by Porche appointing Volkswagen Group Sales India as its sole importer last year while de-clutching Precision Cars who had been the official importer of Porsches for a period of 8 years.

After the sales operations are clubbed into the VW Group, Porsche set a record for the highest deliveries in a month in India by selling 117 units in October 2012.
Precision Cars has filed as many as six cases in different locations in India against Porsche AG.

A spokesperson of Precision Cars India told Hindustan Times that, “We have always made bonafide efforts to sort out the issues with Porsche, but they have…not given any support in resolving these issues. We were left with no choice but to pursue the matter legally.”


Read more: Porsche AG CEO and 8 board members issued arrest warrants
 
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