Vietnam Takes Legal Action Against Porsche Automotive Corporation

A Macan owner has taken legal action against Porsche Saigon, seeking recompense for their material losses in accordance with Clause 2, Article 361 of the 2015 Civil Code. This comes after their vehicle's gearbox malfunctioned.

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The car owner, Pham Anh Tan from An Lac Ward, Binh Tan District, Ho Chi Minh City, has made the decision to take legal action against Porsche Saigon Center (Tan Thuan Dong, District 7) regarding the repair of a damaged Porsche Macan 2016 transmission. After months of ongoing debate over the cause and responsibility for the damage, the case will now be brought before the court.

On July 26, 2023, Hale Vietnam Co., Ltd., represented by legal representative Pham Anh Tan, submitted a lawsuit to the court.

Luxury Car Company Porsche Sued in Vietnam
A bailiff was established to bring the case to the court.

The People’s Court of District 7, Ho Chi Minh City is currently handling a lawsuit against Prestigious Sports Car Company Limited, the distributor and authorized warranty provider for Porsche cars. The plaintiff, Tan, has filed a complaint stating that Porsche Saigon has been withholding possession of a Porsche Macan, which belongs to Hale Vietnam, resulting in financial losses for both the company and Tan personally. The incident has been ongoing since April 2023.

According to Tan, Porsche Saigon has been found to be in violation of Clause 1, Article 351 of the 2015 Civil Code, which pertains to “Civil liability resulting from breach of duty”. It has been determined that Porsche Saigon has failed to properly fulfill its obligations and has engaged in unauthorized disassembly and mechanical manipulation of the vehicle, resulting in its current state. As a result, Porsche Saigon is obligated to provide compensation to Hale Vietnam for all material losses incurred, as specified in Clause 2, Article 361 of the 2015 Civil Code.

Luxury Car Company Porsche Sued in Vietnam
Confirmation of petition from the People’s Court of District 7, Ho Chi Minh City.

Hale Vietnam Company has filed a legal motion requesting the court to compel Porsche Saigon to pay a total compensation of VND 1,052,727,000 (USD 44195.16). This amount includes VND 595,727 million, as quoted by Porsche Saigon’s service, for the transmission replacement cost (including value-added tax) on January 5, 2023. Additionally, the compensation comprises VND 7 million for bailiff establishment, VND 50 million per month to cover the loss value of the car over a six-month period from the commencement of the lawsuit, VND 10 million per month to compensate for the loss suffered by Hale Vietnam due to the unavailability of the vehicle, also for a six-month period from the commencement of the lawsuit, and VND 15 million per month to cover the time cost associated with dispute settlement, calculated over six months.

– Pham Anh Tan mentioned that he received a written response from Porsche Vietnam (Prestigious Sports Car Co., Ltd) on August 3, subsequent to submitting the petition.

Porsche Vietnam has acknowledged receipt of the petition and responded by confirming the withdrawal of the previously offered 40% discount on the replacement transmission, as stated in the document dated February 8th.

Luxury Car Company Porsche Sued in Vietnam
A reply from Porsche Vietnam, asking Tan to receive the car and refuse to take any responsibility about the car’s damage.

Porsche Vietnam has requested that Tan accept a Porsche Macan with a transmission in need of repair at the garage. They have emphasized that they will not assume any responsibility for any damages incurred to the vehicle or any issues that arise during its time at the garage.

According to a previous report by Tri thuc & Cuoc song, the incident began on December 8, 2022, when Tan, the representative of Hale Vietnam, brought a 2016 Porsche Macan to Porsche Saigon for repair, repainting, and replacement of the front bumper. It should be noted that Hale Vietnam did not have any specific requirements regarding the inspection and repair of the transmission or internal machinery of the vehicle.

Luxury Car Company Porsche Sued in Vietnam
The front bumper crashed before being taken to Porsche Vietnam’s garage for replacement.

On December 16, 2022, Tan visited Porsche Saigon to pick up his car and encountered no notable issues. However, on December 21, 2022, after driving for approximately 1 kilometer, the Porsche experienced an error. Specifically, the transmission became oiled and ceased to function, along with numerous other errors. Tan promptly reported these incidents to Porsche Saigon.

In late December 2022, Tan brought his car to Porsche Saigon for a diagnostic inspection. On December 28th, 2022, Porsche Saigon unilaterally removed the transmission control valve without prior notice or authorization from the vehicle owner.

Porsche Saigon announced on January 5, 2023, that the car has experienced an oil leak in its transmission along with a damaged control valve. To resolve these issues, it is recommended to replace the transmission, costing VND 595,727,000 (inclusive of value-added tax).

Luxury Car Company Porsche Sued in Vietnam
After driving for about 1 km, the Porsche reported an error.

During his time at Porsche Saigon, Tan captured footage of the car repair area using a camera. The video reveals that Porsche Saigon, without authorization from Hale Vietnam, tampered with the internal machinery during the initial repair from December 8 to 16, 2023, resulting in severe damage.

On January 17, 2023, Hale Vietnam formally lodged a complaint with Porsche Saigon regarding the alleged unauthorized removal of the transmission during the initial repair of the car. The purpose of the complaint was to seek clarification and verification on this matter. On February 8, 2023 and February 21, 2023, Porsche Saigon responded to the complaint by offering a 40% discount on the replacement of the transmission, amounting to VND 240,000,000. However, Porsche Saigon failed to provide any explanation or evidence to address the concerns raised in the complaint.

Luxury Car Company Porsche Sued in Vietnam
A receipt saying that the Porsche Macan needs to replace its transmission with a total price of VND 595,727 million from Porsche Vietnam.

On April 6, 2023, Porsche Saigon made a proposal to hand over the vehicle requested by Hale Vietnam, four months after the incident occurred. However, Porsche Saigon has specified that the handover will only be carried out under the condition that Hale Vietnam signs a Minutes with repair order No. 252004216 dated December 28, 2022. This document confirms that Hale Vietnam acknowledges and understands the extent of damage to the car. Hale Vietnam disagrees with this claim, considering it to be unfounded.

As of now, Tan’s Porsche Macan remains in the car repair area of Porsche Saigon. The owner has been notified by Porsche Saigon to retrieve it soon, to avoid incurring a storage fee of VND 200,000 per day.

Tri thuc & Cuoc song