According to a report by Automotive News, Maserati North America may have falsified nearly half their sales in December 2014 and an undisclosed amount for other months through a demonstration car scheme that rewarded dealers for being complicit in the scheme.
A lawsuit filed by Recovery Racing, owner of multiple Maserati stores in the northeastern U.S., claims a program aimed at falsely boosting sales numbers financially disadvantaged its business because of its reluctance to participate.
Court documents filed by Recovery Racing state former Maserati North America CEO Peter Grady communicated on Sept. 23, 2014, the details of a Ghibli Performance Bonus that would apply to new 2014 and 2015 Ghibis sold in a specific timeframe.
On Sept. 29, Regional Sales Vice President Rick Fuller demanded via email that dealers “punch” a 2015 Ghibli demonstrator unit, even though those units had not yet been delivered.
A “punched” vehicle is considered sold; when a digital retail delivery report — or RDR card — is filled out and submitted to the distributor. It also marks the vehicle as unavailable for dealer trade. Dealers commonly “punch” demonstrator units, but in small numbers — typically one per model available within a manufacturer’s lineup. Toward the end of a vehicle’s life as a demonstrator, the vehicle is sold as “new” to a customer — usually at a reduced price — and the RDR card is updated with the customer’s information.
A day after the first “punch” request, Fuller sent out another email demanding dealers do the same to their 2014 GranTurismo, GranTurismo Convertible Sport and GranTurismo Convertible MC demonstrator vehicles, threatening that Maserati would eliminate future incentives if dealers didn’t comply.
Maserati claimed a 300-percent increase in sales the following October with 1,367 vehicles sold, the same month FCA went public.
I’ll allow Automotive News to explain the kicker:
In December, Maserati again told dealers to punch vehicles into demonstrator status. On Dec. 31, Fuller forwarded an email indicating that Maserati of Westlake in Thousand Oaks, Calif., had sold 70 Maserati vehicles in December 2014, and Maserati as a whole had sold 743 vehicles that month, according to court documents.
But two days later, Fuller forwarded an email saying that Maserati of Westlake had sold 155 vehicles in that month and Maserati as a whole had sold 1,431 vehicles, according to the documents.
“The purported increase in vehicles allegedly sold by both Maserati of Westlake and Defendant Maserati in December 2014 was due to vehicles punched into demonstrator status and not yet sold to a retail customer,” the complaint said.
Maserati North America and former CEO Peter Grady declined to comment on the report with Automotive News.
According to Tim Cain’s numbers at GCBC, I’d say Maserati’s US sales have followed a very reasonable seasonal trend, with a dramatic upward swing around October 2013 – prompted by the Ghibli.
Doesn’t fudging numbers as alleged mean you have to explain hundreds of missing cars? This should be easily explainable with an investigation of DOT registration records.
I couldn’t get past ‘Recovery Racing’! [Visions of repo-men racing repossessed cars]
I don’t like that name either. Recovery is something tow trucks and addicts have to do.
This is what happens in Germany as a matter of course to boost month-end sales. Change ’em into demos on the 31st and flog ’em as used on the first.
Possible, though improbable, that nobody else has pulled off maneuvers like this in the US before.
Looking forward to hearing what happens if the scenario depicted is true and law enforcement or some stock exchange or other investigates.
Hey, if they’re really in such a hurry to get rid of those Maseratis, they should only bring one to my driveway. I’d look good in a Ghibli S Q4.
In all seriousness, though, isn’t that the normal tactic with automakers, to mark unsold units as sold? It may wind up making a bigger sales-percentage difference for Maserati versus, say, Mercedes-Benz, but it’s hardly out of the ordinary.
Rough ride, Mostly components shared by Chrysler/Dodge and Fiat.
$90,000 with less features than a Charger Hellcat.
OMG with the Hellcat. In a Venn Diagram there would zero connection of customers.
I’m just saying. The Hellcat makes more sense.
sure, but the btsr hellcat venn would be one circle.
You’d probably want to return the Ghibli after a few months. Several people I know with Ghiblis have dealt with significant quality problems so far. It does not appear that this model will contradict the Italian car reliability stereotype.
Interesting. Can you be more specific? What problems, how many cars?
I don’t see many Maseratis locally, it’s not that kind of market.
I know they had lots of suspension and transmission issues 10 years ago. Wondering what the weak points are this time around.
A multitude of electrical gremlins. The Maserati forums are a real horror show.
I wouldn’t return it if it were free!
All I know is that at least two of those Ghiblis did sell, one way or another. The office where my wife works has two of them typically sitting side by side when I go through the lot.
Do their abrupt rear treatment and wonky styling make you feel a bit ill when seen x2?
I believe it’s pretty common in the US too but most dealers play along.
I’m sure Sergio Marhionne knew nothing about this little scam…
Everyone in the industry knows about this little scam. Check your local dealers for “demo” cars with less than 50 miles on them.
Meh. This is a pretty common practice among all automakers.
IIRC, the Dynasty my parents bought new in 1988 had 200 miles on it or something, and was a demo.
What a winner of a car!
http://www.curbsideclassic.com/wp-content/uploads/2014/09/dodge-dynasty.jpg
Did we look poor driving around in that at that time? Even the child in the picture is pointing and laughing at it.
haha…when my brother and I were kids we called that car the Dodge “Die-Nasty”
Regarding the Maserati, if you like them, wait until you can find one @ CarMax 70% depreciated with low mileage and Carmax warranty
I did that too. Maybe a couple of years later though, when I was old enough to understand such word play!