Ferrari Lawsuit Alleges Diagnostic Tool Used to Roll Back Odometers
Ferrari Lawsuit Alleges Diagnostic Tool Used to Roll Back Odometers
- A high-profile lawsuit has emerged alleging that a Ferrari dealership in Palm Beach, Florida, used a Ferrari diagnostic tool known as the DEIS Tester to reset the odometer on a 2015 LaFerrari, inflating the car’s value by over $1 million. The case, which involves former Ferrari salesman Bud Root, raises serious concerns about odometer tampering practices within Ferrari’s dealership network, highlighting potential complicity by Ferrari North America.
- Key Allegations and Timeline:
- Odometer Rollback on a 2015 LaFerrari
- In October 2015, a technician at New Country Motor Cars in Palm Beach allegedly reset the LaFerrari’s odometer after receiving cash from the car’s owner. This action supposedly inflated the value of the supercar by over $1 million.
- The rollback reportedly required login access through Ferrari North America’s network, with the technician allegedly coordinating over the phone with Ferrari NA.
- Longstanding Practice of Using the DEIS Tester for Rollbacks
- Root’s lawsuit claims the DEIS Tester has been used for odometer rollbacks as far back as April 2010, supported by internal Ferrari policy manuals and specific factory instructions.
- It further alleges that Ferrari factory technicians were trained on this reset procedure during an official Ferrari training session in Italy in March 2015.
- Ferrari’s Knowledge and Subsequent Internal Memo
- Ferrari reportedly became aware of these practices and, according to court documents, issued a memo on March 2, 2017, urging dealers to discontinue using the DEIS Tester for odometer resets.
- The memo indicated that Ferrari SpA would release a software update by May 15, 2017, disabling the odometer reset functionality in the DEIS Tester.
- Ferrari North America’s Response
- Krista Florin, Ferrari North America’s Director of Communications, stated that the tool was intended for legitimate use in cases of odometer malfunctions when the previous mileage was unknown. She emphasized that the tool was aligned with U.S. law when used appropriately.
- The memo’s timing, according to Florin, coincided with a software update and was not a response to media reports. Ferrari’s move aimed to prevent odometer fraud by unauthorized third parties.
- Root’s Whistleblower Claims and Retaliation Allegations
- Bud Root, who worked as a Ferrari salesman for 22 years, filed the lawsuit after allegedly being terminated in January 2016 for raising objections about the rollback practices.
- Root claims that after discovering the DEIS Tester’s odometer rollback capability, he brought the matter to his superiors, which he alleges led to his termination for “egregious violation of business ethics.”
- Root was rehired in March 2016 but claims the dealership retaliated against him, including moving him to a less accessible office location.
- Ferrari’s Technical Bulletin
- Following Root’s lawsuit, Ferrari issued a technical bulletin in April 2017 to all North American dealerships, officially removing the odometer reset capability from the DEIS Tester.
- Ferrari also committed to removing language regarding odometer rollback procedures from its workshop manuals, which had previously guided technicians on performing resets.
- Demand for Documentation and Investigation
- Root’s attorney, David Brodie, demanded that Ferrari disclose all instances in which odometer rollbacks occurred over the past eight years and provide related data, including VINs of affected Ferraris.
- Brodie stated that Ferrari has a duty to inform its customer base and shareholders about any instances of odometer fraud, stressing that the reset function’s removal followed media scrutiny and Root’s whistleblowing.
- Impact on Ferrari’s Reputation
- The case has not only drawn significant media attention but has also raised broader concerns about the role of luxury automakers in resale value manipulation. Root’s lawsuit and Ferrari’s subsequent technical adjustments indicate the potential for large-scale impact on the luxury car market and Ferrari’s standing among buyers and collectors. The lawsuit, which includes a countersuit by the LaFerrari’s owner, remains ongoing and has called for Ferrari to clarify the extent of the DEIS Tester’s past uses, especially regarding odometer resets for cars resold at inflated prices.