Dealer Sues Porsche Over Exclusive Requirement
$300 million suit claims carmaker violated state franchise law by withholding inventory.
Porsche responded in suit that Florida law doesn't bar it from allocating "pool" cars at its discretion.
IMAGE: Porsche
A Miami-area car dealership recently sued Porsche, saying the automaker withheld inventory allocations when the dealer refused to establish an exclusive stand-alone store.
Luxury car dealership The Collection is seeking $300 million in the suit, citing a Florida franchise law, the Florida Dealer Protection Act, which bars carmakers from forcing dealers to operate exclusive brand stores.
Porsche said it allocates “pool cars” to dealerships at its discretion and that they generally make up 20% or less of total inventory. To get them, dealers have to have exclusive brand stores.
The Collection claims the withholding of inventory has cost it millions of dollars. It said the spots Porsche requested an exclusive store be established are remote and wouldn’t support such sales.
A Porsche letter filed with the lawsuit says Florida law doesn’t stop carmakers from allocating pool cars at their discretion.
Originally posted on Auto Dealer Today
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