The Indian arm of Porsche AG, an iconic German sports luxury car maker and part of the Volkswagen Group, is facing legal trouble from its former vehicle import partner over unresolved issues. As per reports, Precision Cars India, who used to import Porsche models for domestic buyers, has slapped a cheating case against the German firm.
Further, a Jaipur court has issued arrest warrants against Matthias Mueller, Chairman and Chief Executive Officer (CEO) of Porsche AG along with eight members of the Board of Directors. In the high profile business dispute, Precision Cars India has filed six cases of cheating, extortion, criminal breach of trust, dishonestly inducing delivery of property and criminal conspiracy, against the German car maker. The Jaipur court has ordered the Central Bureau of Investigation (CBI) and the local police to coordinate with Interpol for approaching Porsche top officials based in UAE and Germany. Accordingly, legal notices will be served to the executives in the near future.
The problem started when Porsche gave away its vehicle import business to Volkswagen Group Sales India Private Limited (VGSIPL) in the country last April 2012. As per reports, Precision Cars India was not made aware of the proceedings, which had been importing Porcshe models in domestic premium imported sports car market for eight years, since 2004.
Shedding light on the company's stance, a spokesperson for Precision Cars India was quoted, “We have always made bona fide efforts to sort out the issues with Porsche, but they have not given any support in resolving these issues. We were left with no choice but to pursue the matter legally.”
