Ex-Ferrari Salesman Sues Ferrari of Palm Beach Over Alleged Odometer Rollback Scandal
A former Ferrari salesman, Robert “Bud” Root, has filed a lawsuit against Ferrari of Palm Beach, alleging wrongful termination after he uncovered an odometer rollback scheme involving Ferrari vehicles. The lawsuit claims that the dealership used a Ferrari DEIS tool to manipulate odometer readings, a practice that could have serious implications for the luxury car manufacturer's reputation.
The Allegations
Root's lawsuit states that Ferrari’s headquarters in Italy has been actively producing and distributing these DEIS devices to dealerships worldwide, allowing technicians to alter a vehicle's mileage with Ferrari's authorization. According to David Brodie, Root’s attorney, "The development, distribution, and licensing of a device which authorized and empowers Ferrari dealerships and technicians to perform illegal odometer rollbacks on Ferrari vehicles is patently irresponsible and brings into question the legitimacy of Ferrari odometer readings worldwide."
The Incident
The specific incident at the heart of the lawsuit involves a 2015 Ferrari LaFerrari owned by retired Sara Lee CEO, C. Stephen McMillan. According to Root, the odometer on McMillan's hypercar was rolled back to “0,” significantly increasing its value by $1 million. Allegedly, McMillan offered money under the table to a technician at the dealership to perform the rollback. When Root objected to the practice, he claims he was terminated from his position.
Ferrari of Palm Beach, a member of the New Country Motorcars Group, has responded by stating that Root was fired for arranging the odometer rollback, a claim he vehemently denies. Root argues that his dismissal was a direct result of his refusal to participate in unethical activities.
Discrimination Allegations
In addition to the claims of wrongful termination, Root also alleges age discrimination, stating that his age was a factor in the decision to fire him. While this aspect of the lawsuit has not garnered as much attention as the odometer rollback claims, it adds another layer to the legal battle.
A Potential Global Scandal
If the allegations are true, this could be a major scandal for Ferrari, affecting the legitimacy of Ferrari odometer readings worldwide. Root claims that manuals published by Ferrari since April 2010 explicitly describe how technicians can reset odometers to zero. The lawsuit suggests that odometer rollbacks may have been performed as recently as March 2015, potentially even at Ferrari’s factory in Italy.
Root's Return and Alleged Retaliation
Interestingly, Root has since been rehired by the Ferrari dealer. However, he alleges that he now faces retaliation and a hostile work environment as a result of his lawsuit. While the legal proceedings continue, the practice of altering odometer readings remains illegal under federal law, with severe penalties for those found guilty of such actions.
Ferrari's Response
As of now, Ferrari has not publicly commented on the lawsuit or the claims regarding the DEIS tool. If the allegations prove to be true, they could have significant repercussions for the automaker, damaging its brand reputation and possibly leading to legal action against other dealerships involved in similar practices.
Implications for the Luxury Car Market
The lawsuit raises broader concerns about the integrity of mileage readings on luxury vehicles, where even minor changes in odometer readings can drastically affect a car's value. The accusation that Ferrari may have been complicit in developing and distributing the tools necessary for odometer tampering could lead to widespread distrust among customers and stakeholders.
Conclusion
Robert "Bud" Root’s lawsuit against Ferrari of Palm Beach is not just a wrongful termination case; it has the potential to become a global scandal with severe implications for Ferrari's reputation and the luxury car industry as a whole. The allegations of a company-endorsed odometer rollback scheme threaten to shake customer trust and raise questions about the legitimacy of used Ferrari valuations worldwide. The legal battle will likely be closely watched, as its outcome could have far-reaching effects on the practices within the high-end automotive market.