By Samuel Ee

THE number of parallel-imported Porsches here is rising. And the German sportscar company sees this as 'disturbing'.

'It is not a huge problem but it is disturbing because we have customers who cannot go to these parallel importers for service and maintenance,' said Christer Ekberg, managing director of Porsche Asia-Pacific.

'This is not illegal, but the consumer must be aware who is the authorised importer and why he is authorised. It is his investments that take care of the customer's car. As long as the consumer is aware of this, it is fine.'

Last year, there were 39 parallel-imported Porsches, or 13 per cent of the record 301 units sold by authorised distributor Stuttgart Auto.

The numbers have risen since. In the first quarter of 2008, there were 14 parallel-imported Porsches, or 15 per cent of the 92 official imports.

The lower OMV, or open market value, of a parallel-imported Porsche, which translates to a lower sticker price, has been a big reason for its growing popularity.

Mr Ekberg said that buying an officially imported Porsche provides peace of mind.

'For example, if there is a recall campaign,' he said. 'This is a serious problem that a parallel importer will not be interested in. A parallel importer is only interested in selling the car. After that, he takes no responsibility for it.'

On the other hand, the authorised distributor is committed to ensure that not only does he take care of Porsche owners today but at least 10-15 years down the track, said Mr Ekberg.

The parallel importer phenomenon is not unique to Singapore, he said. 'You will find it from time to time in many different countries and with different brands. It is the result of temporary business opportunities - for example, availability of models or exchange rate fluctuations.'

Another reason could be that a manufacturer has decided that certain models are not to be exported. When this happens, some dealers take advantage of the situation by importing cars through parallel channels, Mr Ekberg said.

'So we have to make sure that consumers understand there is only one authorised importer for our brand, someone who has to fulfil a lot of criteria to become the contracted importer of Porsche. To be an authorised importer, there are substantial investments.'

For example, the importer's facilities have to be the right size and must follow Porsche guidelines regarding the showroom, workshop, equipment, special tools and parts.

The investment is not just one-time but ongoing, Mr Ekberg said. When Porsche expands its product portfolio, as with the upcoming introduction of the Porsche Panamera - the company's first saloon model - Porsche importers and dealers worldwide have to increase their facilities and training in product and brand knowledge.

'We have to make sure our customers worldwide are taken care of in a Porsche way,' said Mr Ekberg.

This article was first published in The Business Times on Jun 11, 2008.