Everything is shut down. Sales are down. Help is needed.
As the coronavirus sweeps the globe, automakers are aware that their dealerships are not selling cars and making far less money than normal. Without that income, it's hard to keep things going. Porsche North America, however, is now stepping in to help all of its 192 US dealerships.
The German automaker has just announced it is guaranteeing payouts, extending finance, and easing up on dealer performance objectives during this turbulent period. It's actually a very similar plan other automakers such as BMW, Mercedes-Benz, and GM are currently doing.
Porsche dealers are now being guaranteed their customer and marketing satisfaction bonuses for the first half of the year despite the unlikelihood they'll be able to meet certain qualifying objectives. In addition, Porsche's Floorplan Assistance Program will cover a significant portion of vehicle inventory costs for a 60-day period.
These dealers will also be receiving a flat fee to assist with the cost of any new vehicle home delivery starting now through April 30. Porsche expects the number of home deliveries to significantly increase due to stay at home orders. Fortunately, anyone who still wants to buy or lease a new Porsche 911, Porsche Panamera, or any other model can still do so.
Porsche will also allow dealers to return previously leased vehicles instead of keeping them. Normally, they'd be going straight to the Certified Pre-Owned program.
Porsche's finance arm, Porsche Financial Services, is also offering a maximum of 6-month extensions on lease contracts originally scheduled to end by April 30. For lessees really struggling financially, PFS is willing, on a case-by-case basis, to defer lease payments by up to 60 days.
In addition, Porsche is stepping up its social responsibility with more charitable donations. Exact details are still being sorted out, but the aim is to donate food to charities, assist with the procurement of personal protection equipment, provide logistical support for transport needs, use its media presence to assist in vital health-related communication, and the deploy specialist staff such as IT personnel and those with medical training wherever they may be needed.
"Porsche already supports a large number of charitable initiatives and we are significantly extending this commitment during the coronavirus crisis. There are people who urgently need help and we are concentrating on providing humanitarian aid," says Porsche CEO Oliver Blume. "We can overcome the pandemic only if we work together and show solidarity."