Porsche will defend itself in court next March against a $300 million lawsuit filed by The Collection, a major luxury car dealership in Florida. The case centers on allegations that Porsche pressured The Collection to build a dedicated, standalone showroom—and then restricted vehicle supply when the dealer refused.
The Shift Toward Control
Following the COVID-19 pandemic, Porsche reportedly sought tighter control over its American sales network, pushing dealers to invest in exclusive, brand-only facilities. This strategy coincided with a period of high demand and limited supply, where prices soared and dealerships enjoyed significant markups.
Analysts described this move as “the Ferrarification of Porsche,” a deliberate shift toward scarcity and higher prices. Independent luxury car analyst Scott Sherwood noted that Porsche aggressively raised prices post-pandemic, potentially undermining customer loyalty. By 2022, the manufacturer seemingly aimed to standardize pricing and control the retail experience through exclusive showrooms.
The Dealer’s Resistance
The Collection, which also represents Ferrari and Aston Martin, alleges that Porsche demanded a multi-million-dollar investment in a new facility in either Kendall or Cutler Bay, Florida. The dealer declined, citing the proposed locations as undesirable and lacking market potential for Porsche vehicles.
The Collection claims Porsche retaliated by withholding pool-car allocations—vehicles distributed at Porsche’s discretion, which can account for as much as 20% of a dealer’s total supply. The dealer alleges this action triggered a “death spiral” in sales, violating Florida’s dealer franchise laws.
Porsche’s Defense
Porsche denies the allegations, asserting that The Collection intentionally declined to invest in a dedicated facility despite years of declining Porsche sales. The manufacturer has repeatedly sought to recuse its parent company, Porsche AG, from the case as a foreign entity, but these requests have been dismissed by a Miami judge.
Broader Implications
The lawsuit has implications beyond The Collection, potentially setting a precedent for dealer-manufacturer relations across the United States. Sean Burstyn, founder of Burstyn Law, representing The Collection, stated that the litigation implicates the industry nationwide due to similar regulations in other states.
The case highlights the growing tension between manufacturers seeking greater control over retail operations and dealers resisting demands that require substantial investment. The outcome will likely influence future negotiations between Porsche and its dealer network, as well as broader industry dynamics.
The trial, set for March, will determine whether Porsche overstepped legal boundaries in its pursuit of greater control over its American sales network
