Sierra Mike

Guys,

I sent a mailshot to all of the Group's members in the US and Canada last week to consult on the following letter being sent to PCNA. The response has been very good and the letter was sent to PCNA this morning supported by some 30 Rennlisters. The distribution list was Detlev von Platen, Joe Lawrence, Andre Oosthuizen and Tim Quinn.

Macca and I vetted group members to ensure only stakeholders could join however, based on the analaytics of the emails, I'm confident that one of the recipients of the mailshot has forwarded the email to his dealer/PCNA. That email has been read over 130 times so it's a safe assumption. Hopefully that will mean some pre-emptive positive news for you with either PCNA or your dealer contacting you directly.


Dear Sirs,

We are writing further to the GT3 Action Group's letter to Mr Matthias Müller dated 22nd April. Since then, it's good to see that Porsche has successfully replaced a number of engines in 991 GT3s worldwide. Further to that email, UK customers have been offered 'goodwill' 'Porsche Value' packages for Porsche's 'Quality Initiative' in replacing the engines. Naturally this initiative is welcomed and serves to send the correct message to its customers that anything less than excellence in terms of product and the 'Porsche experience' is unacceptable.

Whilst we appreciate that a standardised approach may not adequately reflect the needs of some of your individual customers' situations, it is clear that many of your customers in the United States and Canada have been dissatisfied with the manner in which the situation has been handled. Consequently, we would be grateful if you could consult with your colleagues both in North America and Germany so the needs of your customers can be better addressed.

The Group consists of GT3 customers some of whom are visiting Atlanta this month to share their experiences as well as offer feedback and support. Since this forum can offer invaluable feedback and insight from some of your most loyal customers, we'd like to invite you to join us on the morning of the 21st August. In order to facilitate meeting with Porsche Cars North America, we will be staying at the Sheraton Atlanta Perimeter North Hotel. We look forward to hearing from you.

Kind regards,




Furthermore, the following press release has been issued in the UK:

GLOBAL CONSUMER CAMPAIGN BENEFITS LOCAL CHARITY

A major international campaign aimed at one of the world’s largest carmakers that started in Northumberland has resulted in a £5,500 cheque being written out to a North-East charity.

The global initiative started through web forums after increasing frustration by Porsche customers in countries from around the world months after the manufacturer said it would replace the engines in its halo GT3 model after news of the cars catching fire.

Local businessman Sunil Mehra founded and coordinated the consumer action group, which was devised to get German automotive giant to treat its customers fairly. Customers, having paid for cars which they were told not to use, were being compensated differently according to where they live and, if they lived in the UK, were not offered any compensation at all other than a 12 month warranty.

Following pressure from the group, Porsche Cars GB started contacting its customers earlier this month to offer its 'Porsche Value' package to affected customers. This package seeks to compensate customers in a more consistent manner. Mr Mehra pledged his money to charity and has donated £5,500 to the Falcons Community Foundation.

The campaign that started from Mr Mehra’s desk in Ponteland has so far captured the attention of over 130 members with cars worth over £15m from 13 countries including the UK, USA, Canada, Luxembourg, Sweden, France, Hungary, UAE, Singapore, China and Germany, as well as the automotive and mainstream international media.

Mr Mehra is meeting with up to 70 US and Canadian Group members in Atlanta next week hoping to meet with the CEO of Porsche Cars North America to directly offer feedback of everyone's experience.

He said: “Having suffered a poor experience at the hands of the local dealer myself, I sympathised with everyone for being treated so badly and decided to help by starting the group. I was very surprised when customers from all over the world asked if they could join as well.

"We live in a digital era where the internet has empowered consumers beyond borders. In the space of just a few days, over a hundred people, who were previously strangers to each other, came together to share information and support each other as a result of their dissatisfaction with the way they're being treated.

“It was never about the money but the principle of simply respecting people's consumer rights and treating them fairly irrespective of where they live. I am delighted with the outcome in the UK but there are still many customers who have been left out in the cold and the Group is still working together to help resolve that.

“I'm happy to make the donation to the Falcons Community Foundation because it does so much good for so many people in local communities across the region,” added Mr Mehra.

The Falcons Community Foundation aims to motivate, educate and inspire through sport. The charity is separate from the rugby club but works closely with Newcastle Falcons who continually support the work of the Foundation.

Melanie Magee, director of community at Falcons Community Foundation, said. “We are very grateful for this generous donation from Sunil as it helps towards reaching our annual goal of raising £200k.

“Given the frustration Sunil has faced, he's focused his efforts in a very positive manner and helped others. This in-turn has also benefited us given he has gifted £5,500 towards our work in the community.”

In February, Porsche advised owners of the new GT3 to stop driving their cars while it conducted its investigations but then provided little information to owners for several months.


-ENDS-

For further information, images and interview opportunities, please contact Raman Sehgal at ramarketing | raman@ramarketingpr.com | +44 7808796300 | www.ramarketingpr.com | www.twitter.com/ramarketingpr

Pictured are Melanie Magee, director of community at Falcons Community Foundation, with Carlo Del Fava, former Falcons player, Italian International and Falcons Community Foundation Champion, after being presented with the cheque.

alaint101

Well done Sunil and many thanks!

I'm also planning to donate to charity, FWIW.

Zucc

Well done, very generous!

Mike in CA

Simply outstanding, Sunil!

0Q991

Wonderful!

autoxerGT3RS

A class act!

Haku

Commendable, well done!

Sierra Mike

Thanks Guys - your comments are much appreciated.

Customers shouldn't have to chase, ask, negotiate to get what's fair - it should be offered from the outset. Anyone who thinks Porsche has handled its customers well is living in an alternate reality. On an off the record basis the journalists and PR consultants I've spoken to have said that Porsche's management of this matter has been text book on how NOT to do it. If we can give them some helpful feedback, it not only benefits us but all their other customers as well.

The question is, what does it take for them to listen to feedback and act on the same? Let's see ...

Terrence

I think they have handled this better than any other manufacturer I have ever dealt with, including Mercedes, BMW (E60 M5 oil line problem), and even Ferrari (458 caught on fire first batch of cars). Who else would offer cash simply because production has been delayed to people who haven't even paid a dime for their car yet? And a loaner car? And extra warranty?

GM would have let people literally "burn" for years before they even disclose that there is a problem.

Nizer

And far better than they've handled past GT3 issues!

Well done Sunil.

Nick

European customers received those benefits but double the amount in cash. Are you OK with that?

Customer service is not what others would have done. It is doing what is right for the particular situation. Porsche customers are extremely loyal (in the past 13 years I have bought seven Porsche's and I am considered a piker compared to what others have purchased) and Porsche makes a great deal of profit from their loyalty. At a minimum Porsche should treat its largest market NA the same as its European customers. Not only did it fail to do this but it would not take the trouble to explain its reasons for the disparity.

My engine was replaced at the San Diego port on June 27th and yet I did not take delivery of my car until yesterday August 13th almost two months after the engine was replace. My dealer is located 15 miles from the San Diego port. Why could I not get my car sooner?

Porsche has some explaining to do.

Terrence

Yes. The Europeans also pay a lot more than we do for the car. I am from Hong Kong, and over there we pay double what we pay here. I assume if I were to buy a GT3 there, I should get double what I get back here too.

My brand new BMW E60 M5 had to be returned to the dealer to wait for an oil line replacement. It was there for two weeks. I had no car, no cash, no extended warranty. Hmm....

Sierra Mike

I know for a fact that Group members in the UK were looking to instruct legal proceedings against Porsche GB and the actions of the Group helped avoid that. Legally speaking, customers had/have a case for breach of contract and supplying goods which weren't fit for purpose. The result would have been considerably more costly for Porsche. The argument Porsche may make is that it specifically stated this wasn't a recall to avoid the liability its associated with however, that also meant that everyone could continue to drive their cars. My insurance broker confirmed that if I continued to drive my car, I was still insured whether it caught fire or not but who wants to take that chance? Porsche tried to have its cake and eat it; to a large extent, it did as most people stopped driving their cars despite it not being an official recall.

Cars catching fire despite Porsche's 'advice' not to drive the car would have created an even greater PR problem for Porsche let alone the increased liability. Without the loan cars that Porsche supplied, Porsche would have faced a bill for the cost of comparable rental cars which would run at circa £20k per month. That is a fact and costs like that are by insurance companies everyday in the UK when similar cars are off the road due to an accident.

The Group was offered the services of a number of lawyers on a pro bono basis but these were declined on the basis that the Group was only seeking to help matters through a collective voice ... and it did. If anyone wished to pursue legal action against Porsche, they were free to do so on an individual basis but the Group was not set up for that.

Maybe Porsche performed better than Ferrari, BMW or GM would have in similar circumstances but that's of little consequence to any of the GT3 customers who are buying Porsche. I've been a loyal Porsche customer and, apart from one year when I also owned a Mercedes SLS in addition to Porsches, I've owned Porsche virtually exclusively. If I wanted a saloon car, I would buy a Panamera, if I wanted a convertible, I would buy a Boxster, I wanted an SUV, I bought a Cayenne etc ... Basically a Porsche customer for life. This is not how customers should be treated period whether they're long standing customers or new to the brand. Additionally, the GT3 customer is customarily a driving enthusiast and serial Porsche buyer which makes Porsche's handling of this matter even worse.

This is not about compensation but being treated fairly. Anyone who places an order for a Macan faces a 7 month wait. Apparently Porsche doesn't want people to wait 7 months before joining the Porsche family so they're offering short term leases for about $500 per month for Boxsters/Caymans. When some GT3 customers are buying a car which costs as much as three times as much and have been denied loan cars, how is that fair? The simple answer is that it's not.

Sports cars contribute little to Porsche's profit and specialist cars like the GT3 even less so. Porsche is chasing volume and it's pursuing that through Cayenne and now Macan sales. The numbers say it all. VW made €2.9bn form sales of 4.7m cars whereas Porsche made €2.58bn from sales of just 155k cars. Porsche contributes materially to VAG's overall profit. We can expect cars like the Macan and Pajun to play a greater role in Porsche's profile. The contrast in treatment of Macan and GT3 customers highlights that fact very well.

My own experience has been the worst automotive experience of my life. This has not been due to Porsche but the dealer itself. The general manager's actions have been outrageous. A number of legal letters have been exchanged and next week my lawyer is formalising matters by sending him a 'Letter of Claim under the Pre-action Protocol for Defamation'. Porsche GB is unable/unwilling to intervene so I have to take it upon myself. I accept this is an extreme situation but it's not an experience one expects when buying a £100k+ car let alone a loyal Porsche customer and enthusiast.


Thanks Nizer. I still own my 997.2 GT3 and, as you probably know, many owners are still unhappy with the revised maintenance advice regarding the centre lock nuts and hubs. For any dealer selling a pre-owned 997.2 GT3/RS, how does that dealer know how many track miles the car has done? The answer is they don't and, if there's a problem, Porsche has significant wiggle room to avoid liability.

Your assumption is incorrect. It's got little to do with the purchase price of the car and more to do with how Porsche feels it needs to address that market. Fairness for the customer doesn't come into it but goodwill should. As an example, in Germany Cat A customers were paid €175 per day because the law requires them to do so if the car is off the road after a certain length of time.

The Group has 1 member in Singapore where the car costs circa US540k and 3 in China where the costs circa $400k. They've been left high and dry although we should get an update from them to see how things stand. Although this latest initiative has been taken in the US, anything sanctioned will be done so by PAG. I hope the guys in Germany will consider their customers in the rest of the world when revisiting this situation.

Nick

Sunil, well written!

ADias

The Europeans do not pay PAG 1 cent more than US customers. Their added cost is due to taxes. Same in other parts of the world, subtracting longer distance shipping costs. Socialism costs money.