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China Fund News reporter Yishan

On July 20, Porsche's official website announced the latest senior personnel changes. Alexander Pollich will replace Michael Kirsch as early as September 1 this year.Appointed as President and CEO of Porsche China, taking overall responsibility for the company’s business in mainland China, Hong Kong and Macau. Michael Kirsch will be transferred to another important position within the group.

Alexander Pollich has served as Chairman of the Executive Board of Porsche Germany since 2018. Data shows that in the first half of this year, Porsche sales in the German market increased by 22% year-on-year, ranking first in regional market growth performance.

The new president and CEO has 23 years of work experience

Porsche said Alexander Pollich has been with the company for 23 years, during which time he has held several management positions. He has been chairman of the executive board of Porsche Deutschland GmbH since 2018. As a sales expert with international experience, Alexander Pollich will be responsible for the important Chinese sales market.

In addition to Porsche's home market of Germany, Alexander Pollich, 57, has successfully developed Porsche's business in Canada and the United Kingdom, where he served as CEO. Prior to that, he also worked in Porsche's strategy department and established a global sales network for the brand.

“We are delighted to have Alexander Pollich on board for the particularly challenging Chinese market. He is a proven and experienced sales expert who will further enhance the influence of the Porsche brand in China,” said Detlev von Platen, member of the Executive Board for Sales and Marketing at Porsche. “We would also like to thank Michael Kirsch for his outstanding contribution to Porsche’s business in China over the past two years.”

Porsche said that in addition to safeguarding the brand's current operations, Alexander Pollich's main tasks also include implementing a value-oriented, brand-appropriate growth strategy for the Chinese market. In addition, his focus will be on deeper cooperation with local dealers and further optimization of internal processes and structures.

In addition, until a successor to Alexander Pollich is appointed, the Porsche Germany market will be managed on an interim basis by Karsten Sohns, Chief Financial Officer, and Thomas Illner, Chief Operating Officer, of Porsche Deutschland GmbH.

Porsche's sales in China continue to decline

In recent years, Porsche's sales in the Chinese market have shown a downward trend.

Data shows that in 2023, Porsche's global sales were 320,000 vehicles, a year-on-year increase of 3%; sales in China were 79,200 vehicles, a year-on-year decrease of 15%.

In the first half of this year, Porsche's global sales were 155,900 vehicles, down about 7% year-on-year. Among them, sales in the Chinese market were 29,600 vehicles, down 33% year-on-year. At the same time, Porsche's other large regional market, North America, also declined, with sales of 39,600 vehicles in the first half of the year, down 6% year-on-year.

However, it is worth noting that the German market, headed by Alexander Pollich, achieved sales of 20,800 vehicles in the first half of this year, a year-on-year increase of 22%, the best performance among all regional markets.

On the other hand, Porsche's Chinese dealers are also facing considerable pressure due to poor sales. In May this year, there was news in the market that some Chinese dealers launched protests and boycotts due to falling sales and even selling cars at a loss.

On May 27, Porsche China issued a joint statement saying that Porsche China and all authorized dealers have always maintained a long-term, mutual trust and normal dialogue mechanism; during the period of industry change and transformation, automobile manufacturers must always actively listen to the voices of dealers from the front line. Only by working more closely and supporting each other can manufacturers and dealers better meet the needs of Chinese consumers in accordance with local conditions and achieve sustainable win-win development.

Porsche China also stated that through full discussions, Porsche China and all authorized dealers will jointly seek effective ways to actively respond to market changes and find new opportunities amid challenges. These discussions involve many aspects, including but not limited to business policies, local customer insights, customer service, and electrification transformation and many other key areas.

Editor: Captain

Review: Xu Wen