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Home Technology

Porsche China Issues A Joint Statement with Authorized Dealers

May 28, 2024
in Technology
Porsche China Issues A Joint Statement with Authorized Dealers
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On May 27th, Porsche China issued a joint statement with all authorized dealers titled “Sweeping Away the Clouds, Insight into Reality, and Staying Committed to Moving Forward.” The statement mentioned that the automotive industry is undergoing unprecedented major changes, and Porsche China and its dealers are facing several complex issues together, with opportunities and challenges coexisting.

Porsche China stated that it has always maintained a long-term and trusting dialogue mechanism with all authorized dealers. ‘During the industry transformation and transition period, automobile manufacturers must actively listen to the voices from frontline dealers. Only through closer cooperation and mutual support between manufacturers and dealers can we better meet the needs of Chinese consumers according to local conditions, achieving sustainable win-win development.’

Porsche China mentioned that it will work together with dealers to seek ‘effective ways’ to actively respond to market changes and discover new opportunities amidst challenges. These discussions involve various aspects, including but not limited to business policies, local customer insights, customer service, and electrification transformation.

Insiders said that at the Porsche China Dealers Conference earlier this year, three Porsche dealers in China – Sunfonda, BetterLife, and MeiDong Group – raised objections to this year’s sales targets and demanded compensation from Porsche China for losses on new car sales. However, as of now, the issue has not been properly resolved.

MeiDong Group requested a subsidy of 1 percentage point on new car gross profit; BetterLife Group and other dealers relied on the Automobile Distribution Association to request a subsidy of 4 percentage points on gross profit. However, since these three protesting companies are not core Porsche dealers in China, their demands have not received a timely response from Porsche China.

SEE ALSO: Porsche China CEO: the Current Scale of Chinese Market Is Unable to Support Local Production

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