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Friday, 18 January 2013

Indian magistrate issues arrest warrants in porsche importer dispute

A novel way, perhaps, to deal with a dispute between manufacturer and importer. A  magistrate in Jaipur has issued bailable arrest warrants against nine Porsche executives, including chief executive officer and chairman Matthias Müller. Precision Cars, the marque's importer since 2003, alleges such offences as “extortion, cheating, dishonestly inducing delivery of property, criminal breach of trust and criminal conspiracy” arising from the appointment of Volkswagen Group Sales India as the sole Porsche importer in April 2012. Precision claim that the manufacturer failed to inform them, which they say left them no choice but to file a lawsuit. A criminal court seems like a strange place to take such a dispute, though.

Porsche (in this press release) describe the charges as "baseless", noting that the civil courts in Rajastan have already held against the ex-importer.

The New York Times reports that from January 2011 to March 2012, Precision Cars sold an average of 35 cars per month. During Porsche India’s first month of working with Volkswagen in India, in October 2012, the company sold 117 cars, followed by 51 cars in November.

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