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Disgruntled Porsche GT3 owners demand compensation
UK owners seek £145 a day compensation for time and money lost while Porsche replaces fire-risk engine in all new 911 GT3s
Disgruntled owners of the Porsche 911 GT3 have united to demand compensation of £145 a day for costs incurred while Porsche replaces the engine.
Porsche called back the newly launched high-performance model after two of the £100,000 sports cars caught fire in Europe earlier this year. The firm traced the problem to faulty piston-rod connectors and has halted production of the car while it looks for a solution. The firm, owned by the Volkswagen Group, has yet to say when owners will get their cars back.
The British-based owners and customers behind the GT3 Worldwide Action Group claim they are missing out on compensation offered to those with affected cars in other parts of the world. According to a statement put out the by the group, US owners are being offered $2,000 (£1,190) a month compensation, and owners in Germany 175 euros (£145) a day. The Telegraph has seen an email from Dubai's official Porsche dealer confirming to one GT3 customer it will pay a total of $12,000 in compensation.
However UK owners have been offered no cash settlement, according to the group's founder, north-east England property developer Sunil Mehra. 'We are massively disappointed by the way the manufacturer has conducted itself with its lack of transparency and blatant discrimination between markets," he said in a statement.
According to Mehra, the group represents between 30-35 UK owners and those waiting for delivery after paying a deposit on the car. Porsche has said about 100 owners in the UK are affected, while deliveries of about 1,000 more cars were halted.
The group is pressing for 175 euros a day payable from February 18 when owners were first advised to stop driving the car to cover lease costs, deprecation, reduced warranty, Insurance costs and lack of intended use. It wants 100 euros a day for customers whose car was halted in production and 50 euros a day for those who paid a deposit but hadn't been given a build slot. Porsche UK wouldn't comment on the group's claim.
GT3 owners forced to hand back their car include Top Gear's Richard Hammond and McLaren Automotive. The car-making arm of the F1 racing team bought one of the hardcore Porsches as it prepares a rival of its own in the form of a £120,000 two-seat sports car, dubbed the P13. 'The GT3 is one of the most impressive new cars I've driven," McLaren Automotive CEO Mike Flewitt said at the recent launch of the 650S supercar. He confirmed the company has handed the car back to Porsche for the engine replacement.
The GT3 impressed journalists enough for them to name it Performance Car of the Year in New York earlier this month, despite that fact that none of the cars are currently driveable.
UK owners seek £145 a day compensation for time and money lost while Porsche replaces fire-risk engine in all new 911 GT3s
Disgruntled owners of the Porsche 911 GT3 have united to demand compensation of £145 a day for costs incurred while Porsche replaces the engine.
Porsche called back the newly launched high-performance model after two of the £100,000 sports cars caught fire in Europe earlier this year. The firm traced the problem to faulty piston-rod connectors and has halted production of the car while it looks for a solution. The firm, owned by the Volkswagen Group, has yet to say when owners will get their cars back.
The British-based owners and customers behind the GT3 Worldwide Action Group claim they are missing out on compensation offered to those with affected cars in other parts of the world. According to a statement put out the by the group, US owners are being offered $2,000 (£1,190) a month compensation, and owners in Germany 175 euros (£145) a day. The Telegraph has seen an email from Dubai's official Porsche dealer confirming to one GT3 customer it will pay a total of $12,000 in compensation.
However UK owners have been offered no cash settlement, according to the group's founder, north-east England property developer Sunil Mehra. 'We are massively disappointed by the way the manufacturer has conducted itself with its lack of transparency and blatant discrimination between markets," he said in a statement.
According to Mehra, the group represents between 30-35 UK owners and those waiting for delivery after paying a deposit on the car. Porsche has said about 100 owners in the UK are affected, while deliveries of about 1,000 more cars were halted.
The group is pressing for 175 euros a day payable from February 18 when owners were first advised to stop driving the car to cover lease costs, deprecation, reduced warranty, Insurance costs and lack of intended use. It wants 100 euros a day for customers whose car was halted in production and 50 euros a day for those who paid a deposit but hadn't been given a build slot. Porsche UK wouldn't comment on the group's claim.
GT3 owners forced to hand back their car include Top Gear's Richard Hammond and McLaren Automotive. The car-making arm of the F1 racing team bought one of the hardcore Porsches as it prepares a rival of its own in the form of a £120,000 two-seat sports car, dubbed the P13. 'The GT3 is one of the most impressive new cars I've driven," McLaren Automotive CEO Mike Flewitt said at the recent launch of the 650S supercar. He confirmed the company has handed the car back to Porsche for the engine replacement.
The GT3 impressed journalists enough for them to name it Performance Car of the Year in New York earlier this month, despite that fact that none of the cars are currently driveable.
A full copy of the communication to both dealers and PAG appears here
GT3 WORLDWIDE
ACTION GROUP
<<First Name>>
The GT3 Action Group formed quickly out of the frustration customers faced over the poor handling of the recent engine rod bolt recall by Porsche AG and its regional distributors. The Group currently represents in excess of one hundred members globally. Please note that our membership includes some of your customers and our correspondence has resulted following consultation with the Group's members.
We understand you appreciate our passion for Porsche and our expectation for excellent customer service just as you know that we expect excellence in all that you do. We hope this email will help you meet your customers' expectations just as Nick Murray's recent Youtube video ultimately helped Porsche meet his expectations by Porsche Cars North America.
We recognise that, as a Porsche dealer, you are likely to be an independent business. We also appreciate that you have been given limited information by your regional distributor most of whom are owned by Porsche AG.
Please find a letter below to Matthias Müller, the Chief Executive Officer, of Porsche AG which outlines our grievances and proposals. We ask that you contact your regional distributor and use our correspondence to argue the case for clearer and more frequent communication regarding the GT3 situation as well harmonisation of compensation for your customers in line with other markets where Porsche has already made offers. Please refer to the Compensation Matrix which was compiled based on information from different markets and consultation with our Group.
We hope this information is helpful and wish you all the best in your efforts to support your customers by meeting their expectations.
Regards,
GT3 Worldwide Action Group
Herr Müller
Porsche AG Board
Volkswagen AG Board
We represent a Group comprising over one hundred Porsche 991 GT3 customers from around the world. We have a documented interest in excess of US$18m in this vehicle. As a group, most of us are professionals and business people, many of whom are longstanding, repeat Porsche customers and ambassadors of the brand. By our nature, we are driving enthusiasts who planned to use the GT3 as it was intended - for spirited driving and occasional track use.
The GT3 Worldwide Action Group formed out of necessity due to the overall dissatisfaction and frustration we have all experienced due to Porsche's absolute failure to meet its customers' expectations with regards to the recent engine rod bolt recall.
Following consultation with the group, we are writing to express our collective concerns and submit proposals to remedy the complaints. Our goal is to see these proposals accepted and implemented by Porsche on a global basis with equal treatment, rights, and compensation for your affected 991 GT3 customers regardless of region.
Communication
Porsche AG distributors have failed to communicate effectively, and to date, communication on the recall issue has been infrequent, inconsistent, contradictory and lacking in substance. We recognise the complexity of the task at hand for Porsche AG and its partners however, the current situation is inexcusable and unacceptable.
The Group requires clarity of information regarding their vehicles, which were delivered, built or ordered. We ask that your dealers are better informed so they may communicate effectively to their customers using VIN/case number and the Porsche Integrated Workshop Information System (PIWIS) to determine the manufacture stage and location of their engine/vehicle. Distributors and dealers alike should be able to quickly inform their customers of the likely delivery date for their vehicles.
Compensation
Many of us have suffered significant inconvenience and loss due to the GT3 being withdrawn from use. Confidence in the brand has been shaken not only by the engineering issue but also due to Porsche's poor handling of the situation.
In terms of recompense we have consulted the Group and created a Compensation Matrix which categorises classes of GT3 stakeholder given individual circumstances and the level of compensation considered appropriate based on a variety of factors.
Whilst some of your regional distributors have been forthcoming with compensation details/offers, such as Porsche Cars North America, others, such as Porsche Cars Great Britain, have not. Furthermore, in compiling our data archive, it has come to our attention that different levels of compensation are being offered in different markets. For example, US$2,000 per month in the US in contrast to US$4,000 per month in the United Arab Emirates for a three month period. However, we find it particularly revealing our members in certain European countries, including Porsche's home market, report being offered €175 per day whilst Porsche Cars Great Britain has removed any mention of compensation altogether in its correspondence. It is clear from our findings that not only is Porsche AG discriminating between global markets but it also appears to be discriminating within the European Single Market.
Porsche AG standardises its approach to global markets in terms of product, marketing, training and sales to name but a few key areas. The situation surrounding the GT3 is unprecedented and its management by Porsche AG has caused significant distress amongst many loyal customers. Whilst this is simply a business matter for Porsche AG, the decision to buy a Porsche 991 GT3 by the Group was very much borne out of a passion for driving and for Porsche as a brand. Unfortunately, Porsche has so far failed every GT3 stakeholder in this regard. We therefore ask that you treat every customer the same and harmonise compensation across markets so that everyone is paid the same consideration. We feel it is the least Porsche AG can do to remedy the situation for its longstanding customers who have been loyal to the brand.
Although this may be sufficient to recover lost faith and trust in Porsche for many customers, it may be insufficient for others. Therefore the option of a full refund or cancellation of an order should be offered to every customer. We appreciate that legislation already exists in various markets to exercise that right but we feel that it is in both Porsche's and its customers' interests to avoid complicating matters by resorting to legal remedies as this would only serve to create ill will on both sides. If the compensation package is set at the correct level, i.e. in line with our proposed figures which were formulated following our consultations, we anticipate there will be very few requests for refunds or cancellations.
The Compensation Matrix has been agreed after lengthy consultation with our members, and is based on compensation Porsche has already offered in various markets. We propose Porsche AG adopts this matrix and coordinates its communication accordingly through its distributors so that the offer of compensation can be made to each of its customers with the option of a refund or cancellation of an order. We seek this not just for our Group but for every GT3 customer across all regions globally.
We have written to you not just as the senior management at Porsche AG but as guardians of the Porsche brand; a brand which has undoubtedly suffered due to this unfortunate situation.
Although legislation exists in most regions to protect our consumer rights, as a Group, we ask again that Porsche AG acts fairly out of choice to remedy the situation rather than out of obligation. There are no borders in the digital era and every customer should be of equal value to Porsche AG. It is therefore important to act fairly to all and send a clear message that no customer is of any less value than another.
The Porsche 991 GT3 is a great car but stands tainted. We encourage you to accept our proposal so that the Group and others who are some of your most loyal customers can regain some faith and trust in Porsche as a brand and it's Management. The Porsche 991 GT3 is one car for all markets and its customers expect, and should receive, the same level of treatment from Porsche regardless of their region.
Since we are already engaged in the consultation process with GT3 customers across multiple markets, we invite any questions you may have of us or the Group. We thank you for your consideration and, for the sake of giving your customers some clarity and certainty, we hope to hear of your acceptance of these proposals by Friday 2nd May 2014.
Regards,
GT3 Worldwide Action Group