Bloomberg News

Porsche Says Suit by Fired Indian Importer ‘Baseless’

January 18, 2013

(Corrects name of the Indian company in story originally published on Jan. 17.)

Volkswagen (VOW) AG’s Porsche said criminal allegations by a former Indian importer that the maker of the 911 sports car breached contractual obligations by terminating its services were “baseless.”

A court in the northern Indian state of Rajasthan had issued a bailable warrant for Porsche Chief Executive Officer Matthias Mueller in November after Precision Cars India Pvt. filed a complaint alleging cheating, breach of trust and criminal conspiracy against the German company. Precision, a distributor of Ducati motorcycles and Ferrari cars, claims Volkswagen “unfairly” ended its contract.

Indian courts have “upheld Porsche’s termination of the importer agreement,” the Stuttgart-based unit said today in a statement. “The filing of criminal proceedings is an afterthought and just an attempt by the former importer to open a new -- and in the view of Porsche’s local lawyers inherently frivolous -- proceeding.”

Porsche is taking steps to have the warrants, which are a form of summons to answer allegations before the court, dismissed, the company said.

Precision, which has sold over 1,000 Porsche cars since becoming a dealer eight years ago, is challenging the end of the contract after making investments to sell the vehicles in the South Asian country, Ashish Chordia, a Mumbai-based director at the company, said today by phone.

“We will pursue these cases under the due process of law,” he said. “It’s not a joke to get a warrant issued.”

To contact the reporters on this story: Siddharth Philip in Mumbai at sphilip3@bloomberg.net; Sam Nagarajan in New Delhi at samnagarajan@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net


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