Porsche is set to face a $300 million lawsuit in March next year, filed by Florida-based luxury car dealership The Collection.
According to the lawsuit, Porsche allegedly pressured the dealership to build a dedicated showroom for the brand. When The Collection refused, Porsche is accused of restricting vehicle supply to the dealership.
Post-pandemic, the luxury car market experienced significant fluctuations: limited supply, high demand, and many models selling out before reaching dealerships. In this context, Porsche sought tighter control over its U.S. sales network, mandating dealers to invest in exclusive display facilities.
Analysts dubbed this trend the “Ferrarification of Porsche,” reflecting a shift toward a scarcity-driven, high-priced strategy akin to Ferrari. Porsche consistently raised prices post-Covid, while dealers also inflated prices, leading to substantial price variations across showrooms. By 2022, the brand aimed to regain control by requiring dedicated showrooms to enhance brand experience.
The Collection claims Porsche demanded a multi-million-dollar investment in a new facility in Kendall or Cutler Bay (Miami). The dealership refused, citing these locations as remote and “virtually devoid of Porsche buyers.” Consequently, The Collection accuses Porsche of violating Florida dealership laws, leading to a “spiraling decline” in sales. Porsche denies the claims, asserting the dealership “intentionally avoided investing in Porsche-standard facilities despite nearly a decade of declining sales.”
Porsche AG repeatedly sought dismissal as a foreign entity, but a Miami court rejected the request.
Attorney Sean Burstyn, representing The Collection, told the Financial Times the case “could impact not only Florida dealerships but the entire U.S. auto industry,” as disputes between manufacturers, distributors, and dealers are widespread across states.
Additionally, The Collection alleges Porsche reduced “pool-car” allocations after the dealership declined to build a dedicated showroom. These vehicles, allocated by Porsche, can account for up to 20% of a dealership’s annual inventory.
TH (Tuoitrethudo)
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