Porsche Sued For $300 Million By High-End Miami Car Dealership

As part of the lawsuit, The Collection wants to stop Porsche from opening a new franchise in Florida until the matter is settled. Porsche North America declined to comment.

The lawsuit does mention that Porsche wanted The Collection to establish a dedicated franchise in Kendall or Cutler Bay, but its CEO stated that these areas were too remote or suburban to attract Porsche customers. After The Collection declined, the alleged withholding of pool cars started.

"This is an unfortunate and hopefully short chapter in what has been a nearly 30-year strong relationship between The Collection and Porsche," said Ken Gorin, The Collection's CEO. "We did not make this decision lightly."

The lawsuit also contains a letter sent to The Collection by Porsche Cars North America COO Joe Lawrence.

According to Lawrence, Florida franchise law does not forbid it from handing out pool cars at its discretion. Lawrence also reiterated that dealerships need to meet a certain standard to receive an allocation.

The Collection's decision not to build a standalone Porsche store demonstrates its "unwillingness to meaningfully engage in best business practices and promote the Porsche brand," Lawrence said. "As a result, it should come as no surprise that we continue to withhold discretionary assignment of pool cars to The Collection."

An unnamed source claims that making an exception for The Collection would be unfair, as other dealers have already willingly accepted Porsche's guidelines.

The Collection states that its business would spiral because of how Porsche's allocation system works. The system is referred to as "turn and earn," and dealerships receive vehicles based on the previous years compared to the total national sales. In other words, the more you sell, the more cars you get the following year.

Since Porsche started withholding cars, The Collection's ranking in national sales has dropped from third place in 2018 to 32nd in 2022. As it continues to fall, the fewer vehicles it will receive.

The lawsuit claims Porsche's actions will put it into "a death spiral - an impossible cycle of increasing demands with fewer resources to meet those demands until the dealer's franchise collapses."