Porsche has formed a factory-backed joint venture in Sao Paulo with its long established Brazilian distributor and plans to expand the dealer network

Porsche has formed a factory-backed joint venture in Sao Paulo with its long established Brazilian distributor and plans to expand the dealer network

Porsche is is establishing a national sales unit in Brazil, headed by a former former president and CEO of Porsche Latin America, extending its factory-run distribution network to 18 locations.

Porsche Brasil will be based in Sao Paulo and is expected to start operations in mid-2015. It's a joint venture with long-standing local importer Stuttgart Sportcar SP Veículos. The planned transaction has been already approved by Brazilian's competition authority (CADE).

"An important element when establishing a subsidiary is the market knowledge and the existing dealer network. We are very grateful to have a long term partner on our side that has built up a very strong Porsche business in Brazil", acknowledged Porsche sales and marketing chief Bernhard Maier.

"We want to secure Porsche’s future success in Brazil by getting closer to the market and attend special needs even better with the help of our partner’s market expertise."

"Since our appointment as official Porsche importer in 1997, we have proven that the brand can count on us and on a very loyal customer base here in Brazil," said Marcel Visconde, president of Stuttgart Sportcar.

Matthias Brück, once president and CEO for Latin America, has been named managing director of Porsche Brasil. He has 19 years of experience in the automotive industry, 13 at Porsche.

Brück said: "Mid-term, the market has great growth potential and with the establishment of a subsidiary we look forward to continue the successful work of Stuttgart Sportcar by continuing the positive business development and contributing to Porsche’s global strategy."

The network in Brazil currently consists of seven Porsche Centres. While the dealerships in Sao Paulo, Rio de Janeiro, Porto Alegre and Curitiba are 100% owned and managed by Stuttgart Sportcar, Porsche is represented in Brasilia, Ribeirao Preto and Sao Jose do Rio Preto by Eurobike. The automaker plans to gradually extend this network.