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Written by / Windsor

edit / Huang Da Road

design / Zhao Haoran

After returning to China, Michael Kirsch did not stay for the full three years.

On June 1, 2022, Ke Shimai took officePorscheAs President and CEO of Porsche China, he is responsible for the business in mainland China, Hong Kong and Macau. Before that, he was President and CEO of Porsche Japan for three years. Before that, he was in charge of the Porsche Korean market for three years.

Kossmaier spent almost all of his career at Porsche in the Asian market. His departure is hard not to associate with the Porsche dealers' forced abdication in May.

At that time, some media reported that some Porsche dealers in China used the weapon of stopping the import of cars to demand that Porsche's German headquarters replace senior executives and provide subsidies. Among them, three dealers, Xinfengtai, Baideli and Meidong Group, demanded that Porsche subsidize them with 1%-4% of the gross profit of the purchase of new cars.

The much-discussed incident ended with Porsche issuing a statement and the two sides shaking hands and making peace. There is no official news on what agreement the Chinese dealers reached with Porsche, but an insider revealed that the German headquarters made concessions and agreed to some subsidies.

In a large multinational group, someone has to pay for such things. Cui Dongshu, secretary general of the China Passenger Car Association, said in an interview with the Frankfurter Allgemeine Zeitung that the change of CEO has a positive effect on calming dealers' dissatisfaction and stabilizing internal emotions.

According to Germany's Bild newspaper, in addition to 58-year-old Kossmaier, his direct leader, 60-year-old Detlev von Platen, a member of Porsche's global sales and marketing executive board, is also in danger.

An insider revealed that "von Platen is no longer able to participate in the discussion. In fact, Porsche Group CEO Oliver Blume himself is closely following what is happening in China."

Porsche's big boss personally stepped in. For Blume, a problem that can be solved with a little money is not a big problem. In addition to being the head of Porsche, Blume also serves as the CEO of Volkswagen Group. Within the Volkswagen Group, criticism of his "dual role" is growing louder and louder.

"The boss is running from one fire to another like a firefighter, seven days a week. At some point it's too much for one person," said one insider.

Sales volume drops by one-third, Porsche's good days are over

"forXiaomi SU7Similar to the Porsche, I think maybe good design always has a heart.”

When asked about his opinion of Xiaomi SU7, which looks similar to Porsche, Ko gave a high-EQ response. This may be the most famous statement he made during his tenure in China.

The smart electric revolution in China has left German manufacturers somewhat breathless, with more than 100 electric car manufacturers offering innovative and affordable products to the Chinese market. With the rise of domestically made cars and the emergence of low-end alternatives, ambitious alternatives are targeting Porsche.

Xpeng MotorsChairman and CEO He Xiaopeng in September 2022Xpeng G9At the time of its launch, it said, "If Porsche was the benchmark of the last era, then Xpeng G9 will take over as the benchmark of the new era."

Lei Jun's Xiaomi SU7 not only looks like Porsche, but also has a Porsche benchmark written on the PPT. This product, defined as a "C-class high-performance eco-tech sedan", is directly benchmarked againstPorsche Taycan Turbo。

There are many more examples like this. Under the siege of Chinese brands, Porsche's good days are over.

In 2022, Porsche's global deliveries were 309,000 vehicles, a year-on-year increase of 2.6%. The total deliveries in the Chinese market were 93,000 vehicles, a year-on-year decrease of 2.5%, making it the only declining market in the world.

In 2023, Porsche delivered 79,283 vehicles in China, a year-on-year decrease of 15%. At the same time, Porsche delivered 320,221 vehicles worldwide, a year-on-year increase of 3%. China is also the only regional market where Porsche has a negative year-on-year growth in 2023. As one market grows, the other shrinks, and the Chinese market, which has maintained the title of "Porsche's largest single market" for many years, has been replaced by the North American market.

In 2024, global sales in the first half of the year were 155,900 vehicles, down 7% year-on-year. Porsche delivered 29,600 new vehicles in the Chinese market, down 33% year-on-year.

In other words, Porsche China's sales have been declining since Kossma took office.

“China CEO is helpless in complex situation”

Coincidentally, the milestone moment when China became Porsche's largest single market in the world began and ended with Kosmer.

From 2012 to 2016, Kossmay served as the Chief Operating Officer of Porsche China, responsible for sales, dealer development and direct sales business. During these five years, Porsche China's sales soared. In 2015, Porsche China surpassed the United States to become the world's largest single market.

Six years later, the Chinese luxury car market is no longer the uninhabited territory it once was, and Porsche's days of making money without doing anything are gone forever.

“Our sales strategy wasn’t working,” the Porsche insider said. “We realized the problems too late. Now it’s clear that the fiasco in China was not without cause.”

Porsche is not untiring. In 2024, Porsche plans to launch no less than four new or significantly modified models in China, launching its strongest product offensive in history, including the third generationPanamera, the new all-electric Taycan, the second generationPorsche MacanAnd the mid-term facelift 911.

Unexpectedly, it was the dealers who first turned the tables. "Detlev von Platen did not understand how to properly manage overloaded dealers," commented a senior manager. "He was too passive and extremely dependent on the CEOs of each region. This worked in Germany, Europe and the United States, but China CEO Michael Koch was helpless in the complex situation."

After returning to the Chinese market, Kosmai was faced with a new China where sales had plummeted and pure electric vehicles were not selling well. The price war in the luxury car market was intensifying, and dealers were selling cars at a loss. In order to complete the sales task, Porsche China still chose to hold back the inventory, which led to the intensification of the conflict between the two sides.

Li Yanwei, a member of the expert committee of the China Automobile Dealers Association, posted on Weibo on May 24 that "Porsche headquarters has sent an investigation team to investigate the problems in the Chinese market, which shows that the German headquarters no longer trusts Chinese CEOs."

Auto blogger Sun Shaojun also expressed his opinion on Weibo on the same day, "Luxury cars are just luxury cars with a price tag. If you buy one, it's equivalent to buying a Volkswagen.Toyota5~8 units, the 4S store can't handle it all of a sudden. The result is that the 4S store and the headquarters are blaming each other and threatening each other. "Data shows that in 2023, the average transaction price of a Porsche car in the Chinese market was 790,000 yuan.‌

Having been used to a smooth life, the strong and powerful old aristocratic style is no longer suitable for the Chinese market.

The new employee arrived one month later and worked closely with the Chinese distributors

Porsche has officially announced its successor.

Alexander Pollich, who has worked at Porsche for more than 23 years, will take over Kossmaier's job as early as September 1 this year and will be based in Shanghai.

Since 2018, Paulich has been Chairman of the Executive Board of Porsche Deutschland GmbH. As a sales expert with international experience, Paulich will be responsible for the important Chinese sales market.

In addition to Porsche's home market of Germany, the 57-year-old Polic has also successfully developed Porsche's business in Canada and the UK, serving as CEO in both markets. Previously, the Bachelor of Business Administration and Economics graduate worked in Porsche's strategy department and later built a global sales network for the brand.

“I am very pleased to have Alexander Polic take charge of the Chinese market, which is currently extremely challenging. He will further enhance the appeal of the Porsche brand in China,” said Detlev von Platen.

Porsche's press release lists Polic's main tasks.

In addition to maintaining the current Porsche business, Polic's main tasks include implementing a value-oriented growth strategy suitable for the brand in the Chinese market. In addition, his focus will be on closer cooperation with local dealer partners and further optimization of internal processes and structures.

Can a China CEO who writes close cooperation with dealers into OKP stop Porsche's sales decline?

At least Porsche has shown its attitude. "After solving all the problems, we hope to provide new impetus (for the development of the Chinese market)," said a Porsche insider.