From Manila Standard, Tuesday, June 28, 2005
‘We’d rather kill the brand’
Spurned Audi distributor lashes out at German carmaker
By Vernon B. Sarne, Motoring Editor

The former exclusive distributor of Audi cars in the Philippines, Auto Prominence Corporation, met with the motoring press last week to air its disgust over Audi AG’s allegedly abrupt and unjustified termination of its distributorship contract late last year. The carmaker, based in Ingolstadt, Germany, has since appointed erstwhile BMW dealer and still Porsche vendor PGA Cars as the new and official Philippine distributor. APC’s contract wasn’t due to expire until 2008.

While the contract did contain a clause stating that Audi could cancel it before the expiration date, APC said Audi could only do so on certain warranted grounds, including a gross violation of a corporate policy. As it was, according to APC finance vice president Ernesto Tan, the contract was terminated by Audi without providing any sort of explanation.

Sounds like that phrase can cover arbitrarily anything that it pleases Audi to define as policy. For example: Bottom line, corporate policy is to make money for the German company. Filipino 'partner' didn't make the Germans money, for whatever reason, and didn't look as if they they were going to. So, adios.

While the recent events suggests highly questionable ethics of APC and that they may be the side mostly at fault, I don't think the behavior of Audi---the alleged lack of explanation, alleged treatment of APC, secretiveness, lack of transparency on their part as well as on the part of the new dealer---acquits the Germans either.

Until Audi is more forthcoming on this matter, it seems that there is a cloud over Audi in Philippines. Regardless of how good their cars may be, I would not be comfortable buying the brand.