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Sales have not increased.PorscheThe top leader of the China region is going to be replaced.

On July 20, Porsche announced thatAlexander PollichHe will take up the position of President and CEO of Porsche China as early as September 1 this year, and will be based in Shanghai.

The current President and CEO of Porsche ChinaMichael Kirsch, will be transferred to another important position within the group.

Just one day before the official announcement, on July 19, Oliver Blume, Chairman of the Board of Management of Volkswagen Group and Chairman of the Executive Board of Porsche AG, came to China again after a lapse of three months and held an internal meeting at Porsche China headquarters in Shanghai.

At that time, news came out that Blume intended to replace Michael Kirsch, President and CEO of Porsche China. Just one day later, the news was confirmed.

01 

Bring in help

The newly appointed CEO of Porsche China, Paul Polić, is also a veteran of Porsche.

According to official information, 57-year-old Polic has a background in business administration and economics and has worked at Porsche for 23 years.

He worked in Porsche's strategic department, engaged in the development of global market sales networks. He served in several key management positions within the group. Since July 2018, he has served as Chairman of the Executive Board of Porsche Germany. He has also served as CEO of Porsche Canada and the United Kingdom, successfully expanding the brand's business in the local area.

It is worth mentioning that Porsche's sales in the German market fell by 11% year-on-year in 2018. However, in the year after Polic took office in Germany, Porsche's sales in the German market increased by 10% year-on-year. In the first half of this year, Porsche's sales in the German market increased by 10% year-on-year.22%, with the fastest growth rate in the regional market.

Perhaps because of his experience in helping Porsche turn things around in the German market, Porsche Global Executive Board member Detlev von Platen said, "We are very pleased that Mr. Pollich will take charge of the challenging Chinese market. He is an experienced sales expert who will further enhance the influence of the Porsche brand in China."

Speaking of which, his predecessor, Ke Shimai, was also highly expected by the group back then.

From 2012 to 2016, Kossmaier served as the Chief Operating Officer of Porsche China, responsible for sales, dealer development and direct sales business. In his fourth year in office, the Chinese market became Porsche's largest single market in the world. Subsequently, Kossmaier retired and successively served as the head of Porsche's Korean and Japanese markets.

In 2021, Porsche sold 96,000 vehicles in China, accounting for nearly one-third of Porsche's global sales. In 2022, Porsche's sales in China fell for the first time since entering China, with sales in the first half of the year down 16% year-on-year. In June 2022, Kossmay took over Porsche's China business again as CEO.

When the official announcement of his appointment was made, Feng Peide said: “Michael Kirsch has made great contributions to the successful expansion of Porsche’s business in Asia during his previous tenure in multiple markets. In addition to his management experience in Porsche China, we believe that he is fully qualified to take the helm of Porsche China, an important strategic market.”

However, Kosmai's rich experience in operating in the Chinese and Asian markets did not allow him to continue to thrive in the Chinese market. Data shows that Porsche's global sales increased by 3% year-on-year in 2022, but sales in the Chinese market fell by 2.5% year-on-year. In 2023, Porsche's sales in China fell by 15% year-on-year, becoming Porsche'sThe only decline in the worldmarket segment, North America replaced China as Porsche's largest single market.

At that time, Porsche CEO Oliver Blume was optimistic that the increase in sales in other markets would make up for the decline in the Chinese market; and the company also adjusted its product supply to China in 2023.

However, from January to June this year, Porsche's sales decline in China further intensified, down 33% year-on-year, making it the only market with a double-digit decline. Sales in the North American market fell 6% year-on-year, and global sales fell 7% year-on-year.

The two consecutive years of decline in sales in China have also affected downstream dealers.

In May this year, due to the sharp drop in sales, Porsche China still chose to reduce inventory even though dealers were selling cars at a loss.Dealers rebel against German headquartersThe drama is unfolding: some Porsche dealers stop delivering cars and demand subsidies from Porsche headquarters while replacing relevant executives.

Until now, Porsche's sales are still not good. In early July, a salesperson at a Porsche Center in Shanghai introduced that "all Porsche models except 911 are currently offered at zero interest for a limited time, with no interest or handling fees for five years.”“Porsche Cayenne80% to 90% off on all models, 10% off on 911 models,TaycanElectric models are discounted by more than 40% at the lowest.”

Externally, they cannot beat Chinese independent brands; internally, they are backstabbed by dealers. The high discounts offered by “trading price for volume” are not as attractive to consumers as imagined.It's not that Porsche can't afford it;Xiaomi SU7More cost-effective" is still a hot topic. The rise of China's own new energy vehicle brands has promoted technological equality, and Porsche can only bite the bullet and "survive the disaster".

Faced with such a situation, Obermu naturally could not be optimistic again and chose to call for help directly.

02 

Poor sales and poor electrification

For a long time, the three words "Porsche" have been a golden signboard, and many car dealers are scrambling to get high-quality resources. But now dealers choose to "force the palace" and make the conflict public. The root cause of all this is that the products are not selling well.

Because of the precipitous decline in Porsche's sales in China, Michael Kirsch's transfer now looks more like a dismissal.

Judging from Porsche’s overall personnel appointments and dismissals in China, since 2004, the term of office of Porsche’s top executives in China has generally been around four years.

You should know that Kossmai will take over from Jens Puttfarcken as President and CEO of Porsche China from June 1, 2022.Two years, he will be replaced. This speed of job change is indeed too fast.

This also indirectly shows that this adjustment is indeed closely related to the decline in Porsche's sales in the Chinese market.

As early as May 24, a member of the Expert Committee of the China Automobile Dealers Association said on a social platform 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."

In addition, during the joint boycott of dealers that broke out in June, several core dealers proposed "Replacement of senior management in China” requirements.

It is not unexpected that Ke Shimai was transferred now.

Porsche described Alexander Pollich, who succeeded Michael Kirsch, as "A sales expert with international experience”。

Having experience in multiple countries and being good at sales is exactly what Porsche is facing now in China.

You know, this year is the year of Porsche products.The Year of Generation Change, the third generationPanamera, the new pure electric Taycan, the second generationPorsche MacanThe mid-term facelift 911 will also be released. It can be said that this year is the largest product replacement year in Porsche's history, so Porsche cannot be careless at this critical node.

In Porsche's announcement, the main tasks for Polic after taking over have been clearly planned, the most important of which is to reverse Porsche's declining sales in the Chinese market.

In addition to implementing the brand growth strategy in the Chinese market, working more closely with dealer partners, and further optimizing internal processes and structures, it is also necessary to promote Porsche's electrification transformation in China.

So to sum it up in one sentence, its focus is mainly divided into four points, namely:Prices, sales, dealers and electrification。

According to Porsche's planning goals, sales of new energy vehicles will account for half of total sales in 2025, and the proportion of pure electric vehicles will reach more than 80% by 2030.

At present, the growth rate of the global new energy vehicle market has slowed down. In comparison, Porsche's electrification process will be more dependent on the single Chinese market. The new coach faces many difficulties.

Buy a Porsche and getXiaomi MotorsThe joke is likely to become a thing of the past. As BBA has successively withdrawn from the price war, Porsche also needs to stabilize the price system in China and maintain its ultra-luxury brand value and height.

Whether it is sales or electrification transformation, the challenges are huge. It depends on how Polic will make his move.