Ferrari in Hot Water Over Odometer Tampering and More
Rolling Back Odometers, Wrongful Terminations, and Even Avoiding Taxes. Just Some of the Things Ferrari and Its Dealerships Might Be Doing…
Allow us to start with a personal thought: Odometer tampering isn’t new. Especially on high-end and exotic rides like Ferraris, where making “minor tweaks” to enhance values is a practice as old as dirt. Sadly, because the selling and reselling of these coveted machines is handled by a somewhat small and tight-knit community, there’s no real proof of it ever taking place. This comment is based on several interactions with Ferrari collectors, resellers, and importers.
That’s until now, of course. Robert Root, aka “Bud Root” is a bit of a Ferrari sales legend in North America, having worked for the brand for over 22 years. In his long tenure with the famed Ferrari of Palm Beach dealership, he sold tens of millions of dollars worth of inventory, sometimes exceeding $2 million per year, which netted him little over $200k in yearly commissions according to sources.
More importantly, Root is the key whistleblower in a case that’s generated several lawsuits, including one against him by Stephen McMillian, the retired CEO of Sara Lee. If you’re wondering what Ferrari, Sara Lee, Root, and odometer tampering have to do with each other, you can read the full case breakdown here.
In a nutshell, Root has sued the dealership’s parent company for wrongful termination, discrimination and retaliation for raising concerns that dealership employees were utilizing a device called the “Ferrari DEIS Tester” diagnostic tool, to illegally make miles disappear from pre-owned Ferraris. More specifically, the $3 million dollar LaFerrari sold by McMillian.
According to the lawsuit, McMillian offered an off-the-books cash payment to a dealership technician, who traveled to McMillian’s home to perform the odometer rollback. When another technician found out due to a digital log found within the machine, he confronted the dealership’s general manager, who blew him off. Not long after that, Root was fired, and his position replaced with the general manager’s mistress (now wife).
That’s not the biggest scandal, as it’s known that in order to perform the digital odometer rollback, the DEIS Tester must connect and receive wireless approval directly from Ferrari. An approval that according to the lawsuit, has been granted by Maranello several times.
This makes us wonder, how many Ferraris have had their odometers tampered with?
Chime in with your thoughts on the forum. >>
