Porsche replaces top China exec as sales slide, dealers rebel

Porsche will replace the head of its China business after a steep drop in vehicle sales and increasing unrest among its dealers.

Porsche has been working to smooth relations with its Chinese dealers as demand for EVs weakens amid increasing competition from domestic rivals and the sluggish Chinese economy remains bogged down by a real estate crisis.

Chinese media reported that some Porsche dealers were asking for compensation for selling EVs at a loss and also objected to this year’s sales targets.

Porsche said that company veteran Alexander Pollich will take over as the new head of its China business by Sept. 1. He will replace Michael Kirsch, who will move to a new role to be announced later.

With 57-year old Pollich, Porsche's China business will be led by an "internationally experienced sales expert" who has been with the company for more than 23 years, most recently as chairman of the executive board of Porsche Germany, the automaker said.

Before heading Porsche Germany, Pollich was in charge of developing the Porsche business in Canada and the U.K.

Porsche, which is majority-owned by Volkswagen Group, suffered a 33 percent drop in China sales during the first half, it said this month.

China accounted for nearly 20 percent of Porsche's global deliveries, and the group's shares have been under pressure as investors are concerned about growing trade tensions with China, a market where Porsche solely relies on imports.

Porsche said Pollich's main task was to implement a value-oriented growth strategy for China.

"Beyond this, his focus will be on an even more intensive collaboration with the local dealer partners as well as the further optimization of the internal processes and structures," the automaker said in a statement.

Reuters and Bloomberg contributed to this report