By Tracy Colman  |  March 27, 2018

Category: Consumer News

Ferrari odometer fraud speedometerA former Ferrari salesperson out of Palm Beach, Fla recently filed a lawsuit against the dealership there alleging that his termination was unlawful.

This complaint, filed in January 2017, accuses New Country Motor Cars of Palm Beach of ending his employment both because he questioned the practice of using a Ferrari DEIS tester to rollback odometers for increased valuation of used Ferraris and because of age discrimination.

The Ferrari DEIS tester is a tool used for many ‘above board’ service needs, but according to the Ferrari DEIS tester lawsuit, the Palm Beach dealership used it often to turn back the odometers of used Ferraris as well.

The narrative of the lawsuit also claims that the Ferrari DEIS tester was a device that required training to use, and Ferrari corporate had been offering that instruction since the tester became available eight years ago. The instruction included how to use the device to tamper with the odometer, states the complaint.

Rumors that a Ferrari DEIS tester scheme developed at the corporate level began to gain traction after the filing of the wrongful termination lawsuit. Since the Ferrari DEIS tester required at minimum the completion of an online corporate electronic authorization to use, speculation on car enthusiast blogs and websites postulated that the odometer rollback practice was not limited to the single Florida location.

In an article published by the Daily Mail in late February of this year, evidence of corporate collusion in an April 2017 was reported, including a technical information bulletin that was filed in Florida court as part of the wrongful termination complaint.

The bulletin indicated that the Ferrari organization had decided to no longer give out codes to dealerships that allowed them to use Ferrari DEIS tester devices to reset odometers.

By admitting the decision to stop providing codes in the bulletin, Ferrari executives  alluded that they had knowledge of this activity all along, alleged the Daily Mail. While Ferrari Corporation claims the timing was coincidental, and that this memo was sent out a mere three months after the wrongful termination lawsuit was filed last year.

The plaintiff in the wrongful termination litigation stated in his complaint that a few hundred-mile odometer resetting can revalue a used Ferrari upwards by a million dollars or more, increasing profit margins exponentially. Because of this, both the individual dealership and the overall Ferrari organization stood to benefit from this feature of the Ferrari DEIS tester.

A spokesperson for Ferrari Inc. made a statement to the Daily Mail summarily indicating that odometer reset when pre-repair numbers are not available is within the legal parameters of federal odometer law.

The spokesperson also alluded that the decision to stop giving codes and remove this function from tester software was made after a risk/benefit analysis. This analysis concluded the chance of unauthorized usage set the corporation up for odometer fraud under federal law and was no longer a desired tool capacity.

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