Porsche China's Dispute with Dealers Over Sales.tasks and Subsidies

TapTechNews May 27th news, according to Interface News, sources said that at the Porsche China Dealer Conference earlier this year, three Porsche China dealers, namely Xinfengtai, Baideli and Meidong Group,异议ed about this year's sales tasks and demanded compensation from Porsche China for the losses in selling new cars, but it has not been properly resolved so far.

It is reported that Meidong Group demanded a subsidy to a 1% gross profit for new cars; dealers such as Baideli Group relied on the Automobile Circulation Association to send a letter, demanding a 4% gross profit subsidy. However, as the three protesting enterprises are not the core dealers of Porsche in China, their demands have not received a timely response from Porsche China.

TapTechNews noticed that Sun Shaojun, the founder of Car Fans, also disclosed similar information on May 24th. He said:

This year, Porsche's sales have dropped significantly, and the pure electric models simply can't be sold. Immediately followed is the price of the car plummeting, and selling the car at a loss. But Porsche China still chose to pile up inventory in order to complete the sales tasks, but the luxury car price is there, and piling up 1 car is equivalent to 5 to 8 cars of Volkswagen and Toyota. The 4S store can't take it all at once. As a result, the 4S store and the headquarters passed the buck and threatened each other. Now the 4S store uses the suspension of car purchases as a weapon to publicly force the German headquarters, demanding the replacement of executives and subsidies, and the contradiction between the two sides has completely intensified.

A source close to Porsche China said that due to the failure to reach an agreement on the sales target and subsidy agreement communicated with the dealers, the annual sales target of the Porsche China market has not been determined so far. The three small dealer groups that are now抱团ging and protesting still make a small number of car purchases, but are only willing to accept the models that sell well.

According to Porsche's official report, from January to March this year, Porsche delivered a total of 77,640 cars globally, a 4% decrease compared to the same period last year. Except for the European market, the sales trend of the company in the Chinese and North American markets is not optimistic. In the Chinese market, Porsche's delivery volume in the first quarter was 16,340 units, a significant decrease of 24% compared to the same period last year. A similar trend has also occurred in the North American market, with a delivery volume of 15,087 units, a decrease of 23% compared to the same period last year.