Porsche Ordered to Continue Supplying Parts to UK Reseller
Discussion
Competition Appeal Tribunal has granted interim relief to spare-parts retailer Eurospares after the German carmaker halted supplies:
https://www.catribunal.org.uk/cases/17325725-euros...
Porsche unlawfully shut out Eurospares, parts supplier tells UK judge.
https://iclg.com/news/22889-porsche-ordered-to-con...
If I'm reading this correctly, authorised dealers cannot sell parts to resellers not involved in repair or servicing?
https://www.catribunal.org.uk/cases/17325725-euros...
Porsche unlawfully shut out Eurospares, parts supplier tells UK judge.
https://iclg.com/news/22889-porsche-ordered-to-con...
If I'm reading this correctly, authorised dealers cannot sell parts to resellers not involved in repair or servicing?
So-called Selective Distribution arrangements always involve restrictions on who people are allowed to sell to. This is permitted because the legal system understands that luxury brands (perfumes, champagne, handbags) would, lose their brand value if they were available from every street trader instead of only from "authorised outlets". Car manufacturers are able to have Selective Distribution arrangements in order to protect the financial viability of official parts and service support for customers who've spent a lot of money on a new car and don't want to find there are no parts available or there's nowhere to get the car fixed.
The basic position is that parts are sold by Porsche only to (a) car owners, or (b) garages who are going to fix somebody's car.
Eurospares doesn't own cars and doesn't fix cars - it's just a re-seller of car parts. Hence the argument, because Porsche thinks that's damaging its business.
Where Porsche GB tripped up was supplying parts to Eurospares for a long time and then trying to change their mind. The so-called Interim Injunction is a temporary court order which prevents Porsche from stopping supply pending a full hearing of Porsche's case. Whether Porsche will want to continue to pursue the case is another matter.
The basic position is that parts are sold by Porsche only to (a) car owners, or (b) garages who are going to fix somebody's car.
Eurospares doesn't own cars and doesn't fix cars - it's just a re-seller of car parts. Hence the argument, because Porsche thinks that's damaging its business.
Where Porsche GB tripped up was supplying parts to Eurospares for a long time and then trying to change their mind. The so-called Interim Injunction is a temporary court order which prevents Porsche from stopping supply pending a full hearing of Porsche's case. Whether Porsche will want to continue to pursue the case is another matter.
Panamax said:
So-called Selective Distribution arrangements always involve restrictions on who people are allowed to sell to. This is permitted because the legal system understands that luxury brands (perfumes, champagne, handbags) would, lose their brand value if they were available from every street trader instead of only from "authorised outlets". Car manufacturers are able to have Selective Distribution arrangements in order to protect the financial viability of official parts and service support for customers who've spent a lot of money on a new car and don't want to find there are no parts available or there's nowhere to get the car fixed.
The basic position is that parts are sold by Porsche only to (a) car owners, or (b) garages who are going to fix somebody's car.
Eurospares doesn't own cars and doesn't fix cars - it's just a re-seller of car parts. Hence the argument, because Porsche thinks that's damaging its business.
Where Porsche GB tripped up was supplying parts to Eurospares for a long time and then trying to change their mind. The so-called Interim Injunction is a temporary court order which prevents Porsche from stopping supply pending a full hearing of Porsche's case. Whether Porsche will want to continue to pursue the case is another matter.
Would the reseller potentially have been selling them cheaper than retail? The basic position is that parts are sold by Porsche only to (a) car owners, or (b) garages who are going to fix somebody's car.
Eurospares doesn't own cars and doesn't fix cars - it's just a re-seller of car parts. Hence the argument, because Porsche thinks that's damaging its business.
Where Porsche GB tripped up was supplying parts to Eurospares for a long time and then trying to change their mind. The so-called Interim Injunction is a temporary court order which prevents Porsche from stopping supply pending a full hearing of Porsche's case. Whether Porsche will want to continue to pursue the case is another matter.
Glassman said:
Would the reseller potentially have been selling them cheaper than retail?
I don't know but I suspect it's one aspect of the issue. Eurospares will have been buying with the benefit of a hefty "trade discount" and it's possible they were then re-selling below Porsche's own prices.Panamax said:
Glassman said:
Would the reseller potentially have been selling them cheaper than retail?
I don't know but I suspect it's one aspect of the issue. Eurospares will have been buying with the benefit of a hefty "trade discount" and it's possible they were then re-selling below Porsche's own prices.My understanding is that OPC's themselves have been banned from selling (offloading?) NOS items (new old stock) via eBay this year.
Where the re-sellers 'win' is their '24/7' online presence for mail-order - Desing911 may be a little more expensive than an OPC on o.e. parts but more than one Porsche specialist I deal with enjoys being able to order from home, in the middle of the night (say), when he or she may have forgotten something during 'office hours'. There are also some re-sellers who have built relationships with customers who just can't 'get on' with their OPC's parts department for whatever reason.
Where the re-sellers 'win' is their '24/7' online presence for mail-order - Desing911 may be a little more expensive than an OPC on o.e. parts but more than one Porsche specialist I deal with enjoys being able to order from home, in the middle of the night (say), when he or she may have forgotten something during 'office hours'. There are also some re-sellers who have built relationships with customers who just can't 'get on' with their OPC's parts department for whatever reason.
CanAm said:
I can t vouch for everything but the few genuine parts I've needed have been the same price from Design 911.
Which is, of course, what the whole thing is about. Porsche can see Design 911 pocketing part of "their" margin. Makes no difference to the end customer who just wants decent parts supply. Which begs the question why Porsche don't have a decent online parts supply system of their own.Answer: Porsche don't want to upset their Dealerships by selling parts direct and depriving the dealership of profit margin.
So round and round we go.
Indys working on fancy cars often state "we only use genuine parts" so at the end of the day it's an attempt to squeeze indys by cutting off parts supply and getting customers back into the dealerships at £200 (+VAT) an hour.
I can see there being an attraction in having control over inventory of rare and hard to find parts for older cars. If there are a limited number of pieces of a particular part in circulation they could be almost impossible to find sitting on a shelf of a third-party reseller somewhere around the globe. If those parts were held by the factory there would be a better chance of finding what you needed. Possibly overly simplistic ?
Jamie Summers said:
I can see there being an attraction in having control over inventory of rare and hard to find parts for older cars. If there are a limited number of pieces of a particular part in circulation they could be almost impossible to find sitting on a shelf of a third-party reseller somewhere around the globe. If those parts were held by the factory there would be a better chance of finding what you needed. Possibly overly simplistic ?
IIRC Ferrari sold all its classic car parts to Maranello Classic Car Parts back in the UK some years ago.FriedMarsBar said:
Glassman said:
Can't understand why anyone would buy genuine from a reseller... Unless there's a discount to be had.
I've used them despite being more expensive as they deliver whereas I need to drive to my OPCGlassman said:
Porsche won't do the same. There's a retail price and one for trade.
Not entirely true, walking into any random OPC and rightly claiming your trade discount because you are genuinely in the MT is one thing, having an account with one dealership local to you allows for more flexibility with pricing.Gassing Station | Porsche General | Top of Page | What's New | My Stuff