Josephine Lau prepared this case under the supervision of Professor Bennett Yim solely for class discussion. Though interviews
were conducted as part of developing the case, the case should not be considered a primary source as certain information has been
altered or is fictional to protect confidentiality or to otherwise facilitate teaching of the case. Accordingly, the case should not be
considered a factually accurate depiction or a record of any specific situation or event. Cases are written in the past tense, this is
not meant to imply that all practices, organizations, people, places or facts mentioned in the case no longer occur, exist or apply.
© 2022 by The Asia Case Research Centre, The University of Hong Kong. No part of this publication may be digitized, photocopied
or otherwise reproduced, posted or transmitted in any form or by any means without the permission of The University of Hong
Kong.
Ref. 22/725C
Last edited: 19 April 2022
BENNETT YIM
JOSEPHINE LAU
PORSCHE TAYCAN: SERVICE FAILURE AND
RECOVERY
Eileen Chau, Head of Customer Relations at Porsche Hong Kong, was at her desk going through
the monthly report on service satisfaction, a routine put in place to ensure the health of the
company’s customer service. A flagged entry caught her attention. She decided to listen to the
audio recording. At the other end of the line, a new Porsche Taycan owner was airing his
frustration. Critical options were missing from the new Taycan he ordered, he said, and he was
disappointed with the dealership’s handling of his complaint. To Chau, it was obvious that this
was a case of service failure and the dealership’s unsuccessful service recovery, and she must
do something about it.
Porsche: Mission E and the Birth of Taycan
Automakers worldwide were planning to address the global climate issue sometime after 2015.
A McKinsey report pointed out the noticeable adoption of electric vehicles (EVs) that occurred
in the second half of 2020, despite the economic downturn caused by the pandemic.1
Global
sales of EVs accelerated, led by Europe, resulting from policy mandates for emission targets
and government tax incentives for consumers.
Taycan, an all-electric sports car, was the flagship of Porsche’s mission E initiative.2
Porsche
first laid out its agenda for electrification and digitization in the company’s “Strategy 2025,”
announced in 2016. Two years later, the company said it would inject more than €6bn in
electromobility by 2022, doubling the planned investment.3
It used the resources to fund the
1 Julian Conzade et al., “Why the automotive future is electric,” McKinsey & Company, 7 September 2021,
https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/why-the-automotive-future-is-electric, accessed 9
February 2022.
2 “Mission E: Porsche’s first fully electric sports car is named Taycan,” press release, Porsche AG, 8 June 2018, Porsche.com,
https://newsroom.porsche.com/en/products/porsche-taycan-mission-e-name-of-series-production-electric-sports-car-
electromobility-concept-study-70-years-sportscar-15602.html, accessed 15 January 2022.
3 Porsche AG, “Porsche Strategy 2030,” https://newsroom.porsche.com/en/company/annual-sustainability-report-2020/porsche-
strategy-2030.html, accessed 15 January 2022.
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22/725C Porsche Taycan: Service Failure and Recovery
2
development of mission E variants and derivatives,4
the electrification and hybridization of the
existing product range, the expansion of manufacturing sites, and investments in new
technologies, charging infrastructure, and smart mobility.
Taycan: The All-Electric Sports Car
The name Taycan, which came from two terms of Turkic origin to mean “the soul of a spirited
young horse,” was selected from 600 proposals. It stood for what Porsche’s first all-electric
sports car was to be: “lively, impetuous, vigorous, light-footed on long stretches without tiring,
and free-spirited.”5
The company projected annual sales of 20,000 units a year, roughly two-
thirds of the sales figure of its classic sports car 911 at the time.6
Deemed “a true Porsche for the age of electromobility,” the Taycan was produced at a new,
carbon-neutral facility in Zuffenhausen in Stuttgart, Germany, using flexible, networked, 4.0
production technology. The electric sports car featured a line of seven models from a saloon to
a coupe. Prices varied with the model and the options, from HKD1,184,0007
for a Taycan to
HKD3,160,000 for a Taycan Turbo S with standard options. Customers could go to
Porsche.com to “build” their own car before placing an order with the only authorized dealer.
A quick browse through the Taycan Forum (https://www.taycanevforum.com/) yielded proud
owners’ expressions of excitement. The online Taycan community and owners’ club boasted
over 3,000 global members.
Overwhelming Demand for Taycan
The world premiere of Taycan took place on 4 September 2019, simultaneously in North
America, Europe, and China.8
Immediately, it met overwhelming market success. In the year
2020, Porsche delivered 20,015 Taycans to customers around the world, despite production
disruptions caused by COVID-19.9
Demand was strongest in the US, followed by Germany
and the UK [see Figure 1]. The lead time for delivery of a Taycan ranged from three to six
months, depending on the specifications and the market.10
4 The development of mission e variant and derivatives referred to the prototyping of Taycan.
5 “The Genesis of ‘Taycan,’” press release, Porsche AG, 9 April 2019, Porsche.com,
https://newsroom.porsche.com/en/products/porsche-taycan-name-meaning-soul-spirited-young-horse-electric-sports-car-
electromobility-emobility-16292.html, accessed 21 February 2022.
6 “The Genesis of ‘Taycan’”, press release, Porsche AG.
7 Since the mid-1980s, the value of the Hong Kong dollar has been pegged at HKD7.8 = USD1 through the currency board
system, with a trading band of HKD7.75–7.85.
8 “World premiere of the Porsche Taycan: Sports car, sustainably redesigned,” Porsche AG, 4 September 2019,
https://newsroom.porsche.com/en/2019/products/porsche-taycan-world-premiere-live-all-electric-sports-car-18445.html,
accessed 11 January 2022.
9 “Porsche achieves robust level of deliveries in 2020,” press release, Porsche AG, 12 January 2021, Porsche.com,
https://newsroom.porsche.com/en/2021/company/porsche-deliveries-2020-worldwide-23368.html, accessed 19 February 2022.
10 “How much lead time do I need to buy a new Taycan in the spring?,” Taycan Forum, 5 December 2021,
https://www.taycanforum.com/forum/threads/how-much-lead-time-do-i-need-to-buy-a-new-taycan-in-the-spring.7923/,
accessed 20 February 2022.
This case is for use in the HSBC/HKU Asia Pacific Business Case Competition 2022 only.

22/725C Porsche Taycan: Service Failure and Recovery
3
Figure 1: Taycan Deliveries in 2020—Top 10 Countries11
Porsche in 2021: A Brand Stronger Than Ever
At the centre of attention in all business units is the enthusiasm of our
customers. It is not only the products but also the service and communication
with our customers around the world that are so important for us.
- Porsche press release12
Porsche AG delivered a record high 301,915 vehicles to its customers worldwide in 2021.13
The number represented an increase of 11% compared to 2020. China continued to be Porsche’s
single largest market, with 95,671 vehicles delivered, a leadership position the country had held
since 2015.14
Benefiting from the economic rebound, the company also enjoyed impressive
growth in the US, selling 70,025 units of its prestigious fleet to North American customers.
[For a breakdown of Porsche’s worldwide deliveries by region, see Exhibit 1.]
Sport utility vehicles (SUVs) led the brand’s portfolio, with 88,362 units of Macan and 83,071
units of Cayenne sold during the period. Sales of Taycan overtook that of the model 911 in
2021, delivering 41,296 vehicles to worldwide customers. [For a breakdown of Porsche’s
deliveries by model, see Exhibit 1.] In 2021, around 40% of the Porsche cars delivered in
Europe in 2021 were electric, either plug-in hybrids or all-electric cars.15
Porsche (China) Motors Ltd.
The year 2021 also marked the 20th
anniversary of Porsche’s entry to China. Porsche (China)
Motors Ltd., a subsidiary of Porsche AG, commenced operations in 2001 to support Porsche
11 Porsche AG, 2020 Annual and Sustainability Report, https://newsroom.porsche.com/en/2021/company/porsche-annual-press-
conference-financial-year-2020-annual-and-sustainability-report-23936.html, accessed 19 February 2022.
12 “Porsche has the most satisfied customers,” press release, Porsche AG, 27 July 2016,
https://newsroom.porsche.com/en/company/porsche-jdpower-market-research-2016-customer-satisfaction-top-places-
12764.html, accessed 25 February 2022.
13 “Porsche delivers more than 300,000 vehicles,” press release, Porsche AG, 12 January 2022, Porsche.com,
https://newsroom.porsche.com/en/2022/company/porsche-deliveries-2021-worldwide-27003.html, accessed 15 January 2022.
14 “Porsche delivers more than 300,000 vehicles,” press release, Porsche AG.
15 “Porsche delivers more than 300,000 vehicles,” press release, Porsche AG.
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22/725C Porsche Taycan: Service Failure and Recovery
4
partners in sales and marketing, as well as after-sales servicing. By the end of 2021, there were
138 appointed Porsche Centres in Greater China distributed throughout the mainland, Hong
Kong, and Macau.
In 2018, the company announced a strategic upgrade to its China management team with an
emphasis on “customer centricity” to support the growth of its largest market.16
A dedicated
customer relations function was established in China to implement professional customer
relationship management and meet individualized customer needs.
As a practice, Porsche ran a customer survey within 30 days after the completion of service to
gauge customers’ satisfaction and to gather input on how to exceed their expectations.17
“Porsche has the most satisfied customers”18
The claim that “Porsche has the most satisfied customers” was in the headline of a press release
when the brand ranked highest overall in the industrywide Automotive Performance, Execution
and Layout (APEAL) Study. APEAL was a benchmark study initiated by J.D. Power, a market
intelligence company, which measured buyers’ emotional attachment and level of excitement
with their new vehicles across 30+ attributes in a variety of experiences such as setting up and
starting, driving feel, safety, infotainment, driving comfort, and fuel efficiency.
The Porsche brand consistently claimed the top spot in the annual benchmark study for almost
two decades.
Market Rankings in China
In addition to the APEAL Study, J.D. Power also tracked a range of industry benchmarks, such
as the Dealer Attitude Study (DAS), Sales Satisfaction Index (SSI) Study, and Customer
Service Index (CSI) Study and reported them in a country-specific context.
In 2021, Porsche maintained its lead among luxury brands in the China APEAL Study, scoring
761 points compared to the industry average of 743 points [see Exhibit 2]. In terms of
relationship with local dealers, Porsche came in 10th
in the China DAS tracking, but it had the
highest score among premium European brands [see Exhibit 2]. As for sales satisfaction, the
brand stayed within the top three positions in the China SSI Study [see Exhibit 2].
Taycan: An Enthusiast’s Dream Turned Sour
On a relatively warm spring day in March, Paul Chan was all geared up for his first encounter
with his dream car, the Porsche Taycan. At the Porsche Centre Hong Kong, he was greeted by
David Wong, a young energetic sales executive.
Paul had read a lot about the new all-electric sports car and had checked reviews online and did
his homework on what best suited his needs. He had his mind set on the Taycan, a much-
anticipated dream car for enthusiasts around the world, for its affordability and its rear-wheel
16 “Porsche China management team is undergoing a strategic upgrade emphasizing on Customer Centricity,” press release,
Porsche AG, 26 February 2018,
https://www.porsche.com/china/en/aboutporsche/pressreleases/international/?lang=en&pool=china&id=2018-02-
26#:~:text=Gary%20Shone%20has%20been%20appointed,ultimately%20lead%20to%20customer%20delight, accessed 25
February 2022.
17 Porsche, “Porsche Service Satisfaction Survey,” https://after-sales.porschehk.com/en/general-maintenance/porsche-service-
satisfaction-survey/, accessed 25 February 2022.
18 “Porsche has the most satisfied customers,” press release, Porsche AG, 27 July 2016,
https://newsroom.porsche.com/en/company/porsche-jdpower-market-research-2016-customer-satisfaction-top-places-
12764.html, accessed 25 February 2022.
This case is for use in the HSBC/HKU Asia Pacific Business Case Competition 2022 only.

22/725C Porsche Taycan: Service Failure and Recovery
5
drive. However, David arranged for him to test-drive the Taycan 4S, as the Taycan model was
unavailable.
Initial Specification
After the test-drive, Paul was more than convinced and immediately placed an order with a
nonrefundable deposit of HKD200,000. He was so excited that he lost no time and accepted the
specification of options [see Exhibit 3] that David recommended. And the young salesperson
assured him that an official receipt would be issued once the deposit, which was paid by credit
card and a personal check, cleared.
Second Specification
Two days later, after thinking more about the options he had committed to, Paul decided to
make some changes. So, he sent a revised specification to David via WhatsApp messaging.
Specifically, he had removed the adaptive air suspension option and added the options of 14-
way comfort seats, ambient lighting, and an electric charging cover [see Exhibit 3].
Another 10 days went by before Paul received a completed order form from David confirming
the revised specifications via WhatsApp. Paul checked the details and confirmed the order was
correct. With the order set, Paul waited anxiously for news on when his dream car would be
delivered.
After a few days, David called and explained the production and delivery timeline. He advised
that production of Paul’s order was scheduled between July and August. Following that, the
vehicle would be shipped to Hong Kong, and Paul could expect a delivery between October
and November 2021. Paul was very excited; and in the meantime, he reminded David that he
had yet to receive the official receipt for his deposit. About a week after the reminder, Paul
finally received the invoice in the mail.
As time passed, and as he read more about the Taycan, Paul was feeling unsure about two
specific options missing from his dream car—the rear-axle steering and the adaptive air
suspension. According to multiple sources, including the Porsche website, forums, and
YouTube, in addition to much improved riding comfort, the adaptive air suspension had a
special feature to raise the car. As the Taycan had very low clearance, this option would help
avoid scratching the body when driving over a speed bump. The rear-axle steering helped
reduce the turning radius or circle of the car by 60cm to improve ease of parking, which was
important in Hong Kong where parking spaces were very tight.
He asked David if it was too late to add the two options and was told the freeze date (deadline)
for the final specification was 1 June 2021. By then, Paul was convinced that the two options
were critical to his driving pleasure. So, in spite of the hefty additional cost of HKD93,496
(inclusive of a 132% tax), he decided to pay for it.
Final Specification
Two weeks prior to the deadline, Paul told David to add the two options, (1) adaptive air
suspension and (2) rear-axle steering, to his order. A prudent customer, he asked if a new
contract was necessary, but David assured him that he could make the changes to his order, and
all Paul had to do was to sign an amendment form. A few hours later, David returned a final
specification [see Exhibit 3] and asked Paul to review and confirm.
In the same communication, he also asked when Paul could stop by to sign the amendment
form. When Paul asked if the document could be sent via email for his signature, David replied
that it was company policy to have the customer’s signature on a hard copy. Paul felt assured
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22/725C Porsche Taycan: Service Failure and Recovery
6
to know that the dealership took customers’ revision of order specifications seriously and
seemed to have a system to ensure that amendments were officially recorded and confirmed.
The following day he went to the Porsche Centre and signed the amendment form.
Like all new owners of a Taycan, he eagerly anticipated its arrival. By late June, he decided to
ask David for an update. After some back-and-forth, David sent him a partial screen capture of
the production schedule, reconfirming delivery in October or November 2021.
In August, Paul’s existing car registration was due for renewal; he contacted David for another
update.19
David confirmed that the delivery date remained unchanged, and production was
completed. The following month, he contacted David twice for updates and repeatedly he got
the same reply—October or November.
Arrival of the Dream Car—Good News and Bad News
One day in October, David called to inform him that his Taycan had arrived in Hong Kong and
was being prepared for clearance. However, Paul’s order had not been delivered in its complete
form. Due to a shortage of parts, his Taycan was delivered with a manual steering column and
one key only. The electric steering would need to be retrofitted, and the spare key would be
provided when parts were available. There was no date as to when that would happen. To make
up for the inconveniences, Porsche offered Paul a HKD8,000 service voucher.
Despite the missing parts, Paul was excited that finally he was one step away from taking
possession of his dream car. He also appreciated Porsche’s offer of the service voucher as a
gesture of apology and compensation for his inconvenience. It was time to scrap his old car in
order to qualify for the one-for-one replacement scheme under the HKSAR’s first registration
tax concession for EVs. After a little negotiation, the scrap sale was arranged, and the moment
of truth arrived.
A Roller-Coaster Ride
Two days later, Paul arrived at the Porsche Centre to complete the outstanding paperwork
before delivery, including a sales contract dated 4 October 2021 with the options listed and an
insurance plan Porsche recommended. David pushed the documents to him, seemingly too busy
to go through them with him. Instead, his focus was on a customer service evaluation card,
which he asked Paul to sign for him while he told Paul that he would fill it out for him later. A
little disappointed about the parts shortage, nonetheless, Paul was so overwhelmed that he
decided to let David have his way.
When Paul returned to his office, he took out the sales contract and checked the listed options
against his specification. To his surprise, the last two options he had added were missing!
He called David immediately to relay the issue. To his further surprise, David seemed totally
unaware of this mishap and said he would check with the factory production team and get back
to him. A few hours later, David called back and confirmed that the two options were indeed
not included in the car that arrived in Hong Kong. Paul felt he had been cheated. By around 9
p.m., he received a message of apology from David, admitting that it was not Paul’s fault, but
rather the dealer’s oversight in handling his order. David asked Paul to give him some time to
19 The HKSAR government offered a first registration tax (FRT) concession for electric vehicles in an attempt to encourage its
adoption in the city. For Paul to maximize the amount of FRT concession, he would need to de-register and scrap his existing
car in exchange for a new electric vehicle. Hence, he was hoping to get some kind of indication from David as to when his
new car would arrive so that he could determine the length of renewal for his existing car registration. For details, visit the
HKSAR Transport Department’s website for details,
https://www.td.gov.hk/en/public_services/licences_and_permits/vehicle_first_registration/new_frt_concessions_for_electric_v
ehicles_2018/index.html.
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22/725C Porsche Taycan: Service Failure and Recovery
7
come up with solutions to remedy the situation, and in the meantime, he had called the car-
scrapping company to hold the deregistration and the scrapping of Paul’s old car until a
satisfactory solution was found.
Paul was completely devastated. He felt as if he had been on a roller-coaster ride. He trusted
the Porsche brand and could not understand how the dealership could have misplaced his order,
particularly when it was Porsche’s unique policy and strategy to offer and price its options
individually for customers’ personalization. Nevertheless, he trusted the company would try
its best to protect its reputation and find an appropriate recovery solution.
Disappointment after Disappointment
The next day, David called and confirmed that the two missing options could not be retrofitted.
Hence, he proposed two solutions: (1) the company could place another order with the right
specifications for Paul, but he was unsure how long it would take for the reordered car to arrive
due to a backlog at the factory; (2) the company would provide monetary compensation if Paul
would accept the car in its present configuration. David’s proposals, with the critical
information such as lead time for a new order and the value of monetary compensation missing,
left Paul with little to ponder.
A day lapsed. David called to advise Paul that it would take 8 to 12 months to deliver the new
order. As if knowing that this information would be a deal breaker, David came up with three
more options for Paul’s consideration:
1. The dealer would install a Porsche car camera (valued at HKD10,000) if Paul was ready to
accept the car as it was. The camera was an accessory Paul had expressed interest in during
the sales process, and it was an option that did not have to be installed at the factory.20
2. Paul could accept and take delivery of the current order as it was. In the meantime, the
dealer would place a new order with the specifications he required. When the new order
arrived, Paul could then trade in his current Taycan as a used car with depreciation and
purchase the new car that arrived with his specifications from the dealer.
3. Paul could cancel the purchase and have his HKD200,000 deposit back with no interest.
None of these offers answered his needs, in Paul’s opinion. And none were reasonable, fair, or
sincere, in the magnitude of things.
Up to this point during the negotiation, to Paul’s dismay, no senior management or supervisor
had reached out to him. David even began to undermine the value of the two missing options
and tried to convince him that the adaptive air suspension was useless. To try to win him over,
David offered Paul another test-drive of a new Taycan, the model that Paul ordered, which did
not have the adaptive air suspension installed as a standard option. Since Paul had earlier test-
driven the Taycan 4S, which had the adaptive air suspension installed as a standard option,
David thought another test-drive might give Paul the experience without the option.
As night fell, Paul was completely exhausted. He called David back around 7 p.m. and
expressed his position on the situation.
1. He did not need to test-drive a car without adaptive air suspension.
20 David earlier advised Paul that the Porsche car camera might not be a good deal given its high price, and it only offered a front
camera. Rather, customers opted for other popular dashboard cameras in the market with both front and rear cameras.
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22/725C Porsche Taycan: Service Failure and Recovery
8
2. He would not cancel his order.
3. He demanded fair and reasonable compensation from the dealer.
After hearing Paul’s stance, David made an additional offer of an extended warranty together
with the free car camera. Paul replied he would give it some thought.
In the following days, there were more negotiations back and forth on the details of the extended
warranty. Paul was feeling frustrated with David for his inability to escalate the matter.
Eventually, David informed him that his manager agreed to only a one-year extended warranty.
By then, it became clear to Paul that he had little bargaining power with a dealer that did not
care about its service failure recovery nor had a functioning system to deal with such failures.
He decided to accept the deal of (1) a one-year extended warranty (valued at around
HKD14,000), plus (2) a HKD10,000 service voucher to be used for installing the car camera.
He reiterated to David that he would like to have the camera installed when his dream car was
ready for pickup. David assured him that the camera was in stock, and he would arrange the
installation accordingly.
Finally, Paul settled the payment, and the car-scrapping and deregistration process was
reinitiated.
The Last Straw
A few days into November, Paul got a call from David telling him there was an issue fitting the
car camera prior to delivery. As it turned out, the car camera, if installed within six months of
its first registration, would be subjected to a 132% tax duty. In other words, if Paul wanted the
car camera to be installed immediately, he would have to pay a tax duty of HKD13,200 out of
his own pocket. Paul found it extremely frustrating and questioned the competence of his sales
representative in doing his job.
Left with an obvious but undesirable choice, Paul deferred the camera installation for six
months.
Five days later, his dream car was ready for delivery. While he was at the Porsche Centre, going
through the final paperwork, it occurred to him that there was no mention anywhere of the one-
year extended warranty that was agreed upon. Paul asked David about it and was told that he
could trust the dealership to honor its promise to extend the warranty for another year after the
standard two-year warranty expired. After so many mishaps and service failures, Paul couldn’t
trust the company’s systems and procedures, so he insisted on a written commitment. Finally,
a one-line remark was added to the sales invoice, indicating that an additional one-year warranty
would be provided.
From Customer-centric to Double-deviation Service Failure
After Paul took delivery of his new car, he thoroughly enjoyed the experience of driving the
Taycan, particularly its maneuverability, responsiveness, and instant pickup and acceleration.
However, his overall driving experience was compromised, particularly when the car was
running on bumpy roads or hitting a speed bump, because without the air suspension, the car’s
suspension was rather hard. He also worried that he risked damaging the car’s undercarriage
when he could not adjust the clearance without the adaptive air suspension. And, every time
he had difficulties parking the car in a tight space, he regretted not having the rear-axle steering.
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22/725C Porsche Taycan: Service Failure and Recovery
9
About a month later, he received a call from customer relations, asking for feedback on his
experience with the new car and the dealership’s service. In essence, it was a post-sales
customer survey.
Paul shared his satisfaction with the Taycan but expressed his utter disappointment with the
dealership’s service. He told about the misplaced options in his order and was “amazed” that
the customer relations representative had not heard about his mishaps. At a loss of what to say
to Paul, the rep resorted to simply offering him a thank-you. After that, Paul did not hear from
Porsche again.
Eileen Chau, Head of Customer Relations, went through the monthly report on service
satisfaction, a routine put in place to ensure the health of the company’s customer engagement.
She was a veteran in customer service, having worked in the field of lifestyle and luxury
products for over 20 years. She was brought in by the Porsche management to provide a fresh
eye on some critical enhancement to the brand’s customer service design and delivery.
As she plowed through the data, a flagged entry caught her attention.
She decided to listen to the audio record. A new owner of a Taycan was airing his frustration
about some critical options missing from the Taycan he ordered. To Chau, it was obvious that
this was a case of service failure and unsuccessful recovery by the dealership. Chau
contemplated why the service failed in the first instance. What had gone wrong in the system
from accepting and confirming the customer’s orders to assessing customer satisfaction? What
could the company or the dealership do to live up to the customer-centric promise?
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22/725C Porsche Taycan: Service Failure and Recovery
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EXHIBIT 1: PORSCHE AG WORLDWIDE DELIVERIES
Geographic Distribution (units)
January–December
2020 2021
Worldwide 272,162 301,915
Europe 80,892 86,160
Germany 26,152 28,565
America 69,629 84,657
USA 57,294 70,025
Asia-Pacific, Africa, and Middle East 121,641 131,098
China 88,968 95,671
Model Distribution
Units
2020 2021
Macan 78,124 88,362
Cayenne 92,860 83,071
Taycan 20,015 41,296
911 34,328 38,464
Panamera 25,051 30,220
718 Boxster & 718 Cayman 21,784 20,502
TOTAL 272,162 301,915
Source: “Porsche delivers more than 300,000 vehicles,” press release, 12 January 2022,
Porsche.com, accessed 15 January 2022.
“Porsche achieves robust level of deliveries in 2020,” press release, 12 January 2021, Porsche.com,
accessed 19 February 2022.
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22/725C Porsche Taycan: Service Failure and Recovery
11
EXHIBIT 2: MARKET RANKINGS IN CHINA
2A: PORSCHE RANKED HIGHEST IN 2021 CHINA APEAL STUDY
Source: “Vehicles in China are Losing Appeal among Owners Born after 1990, J.D. Power
Finds,” press release, J.D. Power, 19 August 2021, https://china.jdpower.com/en/press-
release/2021-china-APEAL, accessed 24 February 2022.
APEAL was a benchmark study initiated by J.D. Power, a market intelligence company, that
measured buyers’ emotional attachment and level of excitement with their new vehicles across
30+ attributes in 10 different experience settings such as setting up and starting, driving feel,
safety, infotainment, driving comfort, and fuel efficiency. The Porsche brand had consistently
claimed the top spot in the benchmark study since 2005.
2B: PORSCHE RANKED 10TH
IN 2021 CHINA DAS
Source: “Average Auto Dealer Profit Rises 20% in China, J.D. Power Finds,” press release, J.D.
Power, 22 April 2021, https://china.jdpower.com/en/press-release/2021-china-DAS, accessed 24
February 2022.
DAS measured dealer satisfaction with automakers on a host of dimensions from training and
sales and marketing support, to parts supply, vehicle ordering, and delivery process. Porsche
ranked 10th
in the 2021 China DAS Index, highest among the premium European brands.
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22/725C Porsche Taycan: Service Failure and Recovery
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2C: PORSCHE RANKED THIRD IN 2021 CHINA SSI STUDY
Source: “Mass Market Automotive Brands in China Exceed Luxury Brands in Sales Satisfaction
for the First Time in 22 Years, J.D. Power Finds,” press release, J.D. Power, 30 June 2021,
https://china.jdpower.com/en/press-release/2021-china-SSI, accessed 22 February 2022.
The SSI study measured buyer satisfaction on seven dimensions, including online experience,
communication before visit, reception, showroom visit, test-drive, deal, and delivery
experience. Porsche came third in the 2021 China SSI Study.
This case is for use in the HSBC/HKU Asia Pacific Business Case Competition 2022 only.

22/725C Porsche Taycan: Service Failure and Recovery
13
EXHIBIT 3: PORSCHE TAYCAN ORDER SPECIFICATIONS
VEHICLE : TAYCAN BASE
MODEL YEAR: 2021
Order No. Individual Equipment Initial Second Final
Exterior Color
R7 Neptune Blue
Interior Color
UA Two‐Tone Partial Leather Interior, Black/Chalk Beige
Exterior
6XV Electric Folding Exterior Mirrors
Drive Train / Chassis
G1X 2‐Speed Transmission on the Rear Axle
1BK
Adaptive Air Suspension including Porsche Active
Suspension Management (PASM)
❌
8LH Sport Chrono Package
0N5 Rear‐Axle Steering including Power Steering Plus ❌ ❌
Wheels
47I 20‐Inch Taycan Turbo Aero Wheels
Comfort and Assistance Systems
KA6 ParkAssist including Surround View
4F2 Comfort Access
Interior
5KA 4+1 Seats
QQ1 Ambient Lighting ❌
Q1G Comfort Seats in Front (8‐Way, Electric) ❌ ❌
Q2J
Comfort Seats in Front (14‐Way, Electric) with Memory
Package
❌
Interior Leather
3J7 Porsche Crest on Headrests (Front Seats)
E‐Performance
2W9 Electric Charging Cover ❌
KB4 On‐Board AC‐Charger with 22kw
NW2 Mobile Charger Connect
EH2
Cable Connection between Control Unit and Vehicle:
7.5m
76H Charging Cable (Mode 3)
Total Price in HKD (excluding tax) 738,331 740,031 780,331
Total Price in HKD (including tax) 1,480,928 1,484,872 1,578,368
Source: Provided by Paul Chan, the protagonist.
This case is for use in the HSBC/HKU Asia Pacific Business Case Competition 2022 only.