Porsche canceled contracts with all of its vehicle dealers in Europe

Article by Christian Andrei, on June 22, 2011

Porsche has canceled contracts with all of its vehicle dealers in Europe, right before the debut of new EU rules regarding vehicle retailing.

Head of marketing and sales at Porsche, Bernhard Maier, informed Automotive News Europe that the company has informed its importers last April that it will implement new agreements for the approximately 300 European dealers in July 2013 in order to prepare for the change in the basic legal conditions.

The current regulations on vehicle block exemption will expire in May 2013. At that time, a new cross-industry vertical block exemption will be launched.

Maier said that Porsche's retail network will not be disrupted by this change, as the existing contracts are being canceled at the end of June 2011, which provides a 24-month notice to the dealers. To ensure continuity in the network, however, the company is giving out new agreements to its sales partners, Maier said.

He added that the company is also taking the opportunity to "fundamentally rework the contract agreement." These days, there remains a special contract with its own enclosures for each of the company’s model line, Maier revealed. He continued that in the future, there will only be one dealer contract, which is leaner and more updated, for all of its product lines.

Maier further disclosed that all the points in the industry association ACEA's Code of Good Practice are considered in the new contracts.

As a small automaker in the past, Porsche benefited from the so-called "De Minimis" rule. This will change with the new block exemption. According to Maier, the company can incorporate the new regulations over the long term.

Topics: porsche, europe, dealer

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