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Old 9th July 2012, 15:29   #1
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Default Precision Cars to sue Porsche India over dealership rights. EDIT : Arrest warrants!

Is this the first of perhaps many repercussions of the April 2012 announcement that the Volkswagen India Group is the sole importer of Porsche?

Precision Cars India (PCI) is suing Porsche India over the appointment of VW Group Sales India as its exclusive importer and distributor in the country. Formerly, PCI was the only official importer of Porsche cars since 2007. After starting with showrooms in Mumbai and Delhi, PCI went on to set up dealerships in Ahmedabad, Chandigarh, Bangalore, Chennai and Hyderabad.

A PCI representative recently told media that they had not been informed about this development. PCI will cite “illegal breach of contract by the manufacturers” to initiate their lawsuit against Porsche. Meanwhile, there has been no word from the VW-Porsche camp on the issue, except that there is nothing more to add to their public notice.

According to this public notice, w.e.f April 1, 2012 only VW Group Sales India will be authorised to import Porsche cars and appoint Porsche Dealers in India. There are currently three such authorised dealers in Mumbai, Chandigarh and Gurgaon. We can only wonder what happens to the Ahmedabad, Bangalore, Chennai & Hyderabad dealerships. Not to mention, where do Porsche owners from those cities go for service & maintenance?

The notice also warns potential customers to avoid unauthorised dealers as “any such deals made by any person(s) shall purely be at their own risk and Volkswagen Group Sales India Pvt. Ltd. shall not be liable to such person(s) for any consideration rendered or payments made, whatsoever, by them to such unauthorised person(s)/entities.”

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Old 10th July 2012, 18:58   #2
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Default Re: Precision Cars to sue Porsche India over dealership rights

Either VW has played very dirty with Precision Cars, or it was extremely displeased with Precision Cars (I would not be surprised if it is either)
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Old 10th July 2012, 19:15   #3
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Default Re: Precision Cars to sue Porsche India over dealership rights

Unless I have a look at the plaint, I wouldn't be able to draw any conclusions.

But I have a feeling that this was VAG's plan all along. Get some dealers to establish the brand in the country and then take over some years later. Don't think it's going down well with PCI.
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Old 10th July 2012, 19:31   #4
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Default Re: Precision Cars to sue Porsche India over dealership rights

Anybody who has dealt with Precision Motors can tell you, that this is a most welcome move by VW. Have met few Porsche buyers who were extremely frustrated with the manner in which Precision handled the transaction.

These are the same thieves who are ruining Ducati's name in India, and I hope VW takes them to the cleaners by they time they are done with them.

Cheers
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Old 10th July 2012, 20:00   #5
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Default Re: Precision Cars to sue Porsche India over dealership rights

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Originally Posted by Harbir View Post
Either VW has played very dirty with Precision Cars, or it was extremely displeased with Precision Cars (I would not be surprised if it is either)
Well its Precision who messed up here. The same group lost the Audi dealership earlier, and now the Porsche. Many people who have dealt with them have been displeased. Everything from delays, to overcharging.
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Old 10th July 2012, 20:35   #6
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Default Re: Precision Cars to sue Porsche India over dealership rights

Is any of the new dealerships operational yet ? Where do a buyer go shop a Porsche car if he has to today?
This will be an invaluable piece of information for the prospective buyers.

Expect availability of test drives, marginal drop in the prices , wider range of models , professional handling of orders and sensible payment plan for the Porsches as soon as VW starts handling sales. I am one of those waiting for the day .
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Old 10th July 2012, 23:25   #7
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Default Re: Precision Cars to sue Porsche India over dealership rights

Does this mean that the dealership on Lavelle Road and the service center on Hosur Road (Bangalore) are not authorised now ?



How does all this manage to happen only in India ? First Audi, then the Ducati fiasco & now Porsche ? Im surprised, dont these companies do a proper verification of the background of the local parties before they sign up with them ?
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Old 11th July 2012, 16:38   #8
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Default Re: Precision Cars to sue Porsche India over dealership rights

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How does all this manage to happen only in India ? First Audi, then the Ducati fiasco & now Porsche ? Im surprised, dont these companies do a proper verification of the background of the local parties before they sign up with them ?
All these are VW group cars. Maybe they're finally deciding to reign in their dealers, after years of Skoda dealers / repair shops living in their own kingdom. This may just be a part of their strategy to build trust in their dealer network.

Hopefully this will mean no dealers now will take out genuine parts from cars and replace them with counterfeit ones (like the case with Harish) !!
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Old 13th July 2012, 10:44   #9
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Default Re: Precision Cars to sue Porsche India over dealership rights

Quote:
Originally Posted by nirmaljusdoit View Post
Does this mean that the dealership on Lavelle Road and the service center on Hosur Road (Bangalore) are not authorised now ?
Not just the Bangalore one's but there have been several others even in other cities like Chennai and Kochi which have sold everything from Cayennes to Panameras and everything in between. So how did these "dealers" sell these cars if they were not authorised dealers.

Unless there is something in the fine print which allows termination of dealership agreements on the changes in ownership (a standard clause in agreements involving a foreign entity), VW doing this unilaterally may not stand in a court of law. But of course VW and it's army of legal advisors would have thought through and finalised a game plan before releasing the notice.

May the best man win.
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Old 13th July 2012, 11:02   #10
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Default Re: Precision Cars to sue Porsche India over dealership rights

I'm sure the legal team at VW AG have played it through after thinking.
The extract clearly states this -
“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.

Dealers of this breed (Precision) who run their dealerships with their priority intent of profit and that alone, need to be beaten with the same stick. That way, more brands can set foot here in the republic of India with the same reputation that they carry internationally. I'm subtly referring to the sorry state of Nissan. When it should have been in the same league as Toyota or Honda, here in India, the shoddy service network is killing the brand.
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Old 13th July 2012, 11:50   #11
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Default Re: Precision Cars to sue Porsche India over dealership rights

Precision Cars had the sole right to import Porsche Cars

Am sure nothing is forever and there would be a termination clause or similar

Considering

1: Conflict of interest
2: Record of poor aftersales service
3: Disatisfied franchisees

VW would have built up a case. If I am right, Precision cars had the option of continuing as a dealer on VW's terms
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Old 14th July 2012, 10:22   #12
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Default Re: Precision Cars to sue Porsche India over dealership rights

Ever notice that there's a pattern here? Why do these situations always happen with the VW Group ? Skoda were doing the same - overcharging, changing parts, poor service etc, Precision did this with Audi, and now it's the same with Porsche.

There seems to be a common factor in all of this - The Volkswagen Group. The various dealers of Skoda, Audi & Porsche are all different entities. One wonders whether it's to do with the Processes or the People within the VW Group.

Methinks it's more to do with the latter. Time for some introspection, VW ?
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Old 14th July 2012, 10:32   #13
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Simple, poor selection of dealers and not monitoring their standards right from the beginning
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Old 14th July 2012, 19:44   #14
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Default Re: Precision Cars to sue Porsche India over dealership rights

Right. And that is why VW needs to look within in addition to terminating dealerships. The management of the VW Group are also responsible for the mess and instead of heads rolling, the dealer development head in Skoda has been promoted and holds a very senior position within VW Group Sales. So we could probably have the sequel to this story unfolding soon.

Last edited by VeyronSuperSprt : 14th July 2012 at 19:48.
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Old 20th August 2012, 20:07   #15
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Default Re: Precision Cars to sue Porsche India over dealership rights

VW has increased prices for all Porsche cars considerably maybe they want to milk Porsche brand

EX Delhi - without Option Prices

Maximum increase (% )seems to be on Caynne Diesel

Boxster S - 82 L
911 Carrera 1,15 Cr
911 Carrera S 1,35 Cr
911 Turbo S II 2,15 Cr
Cayenne Diesel 69.5 L

Panamera is the only one which gets reduction but who is buying these anyway .

Panamera I 1,03 Cr
Panamera Diesel 1.03 Cr
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