Lamborghini says the dealer claimed some $4 million in bonuses through a “shadow program”
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- Lamborghini is suing one of its dealers for allegedly taking millions in bonuses that the automaker says it didn’t earn.
- An audit of the dealer allegedly revealed a “shadow program” designed to sell cars to flippers instead of genuine customers.
- A judge has now cleared the lawsuit to proceed to trial, moving Lamborghini’s case against the dealer forward.
People with the means to flip cars seem to do it across the automotive landscape, often with little to no pushback from automakers. But now, Lamborghini is taking a stand by openly suing one of its own dealers. The Italian company alleges that the dealer not only sold cars to flippers but did so deceptively, securing millions in bonuses in the process.
Ultimately, Lamborghini is accusing Gold Coast Exotics of Illinois, its president, and one employee of committing fraud. According to the automaker, an audit of sales uncovered a “shadow program” surrounding “questionable transactions.”
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According to Auto News, Lamborghini alleges four specific instances of this behavior. In one case, the dealer reported to the automaker that it was selling a new Urus SUV to an ex-pro athlete, but instead, the vehicle went to a “known luxury vehicle re-seller.” Evidently, that same reseller “previously pleaded guilty in a criminal fraud case that involved selling luxury cars to drug dealers and pimps as a way of laundering money.”
In another instance, the dealer sold a separate Urus to that same LLC. A third example involved the selling of a new Huracan to a chiropractic clinic CEO in Minnesota. According to Lamborghini, that vehicle actually went to a “known convicted criminal” who owns a “luxury vehicle sales and rental service in Miami.” The last example cited involved another sale to a “known convicted criminal” despite the dealer allegedly making up a sham customer.
The dealership, for its part, says that Lamborghini is only allowed to audit up to 12 months into the past, rather than the several years that it did. The automaker claims that this scheme goes back to at least 2019 and that the dealer received over $4 million in bonus money as a result of its sales. Gold Coast also contends that Lamborghini didn’t provide it with more information about these allegations.
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Ira Levin, Gold Coast’s attorney, argues that, “Most OEMs have such a policy and provide their dealers with a list to help the dealer avoid such sales. It appears that Lamborghini has a ‘no sale’ list but does not provide it to their dealers, or at least this dealer. The case also presents issues on selective enforcement of its policy with respect to other dealers.”
As of this writing, Gold Coast is still selling Lamborghinis, but most are used examples. While the outcome of the trial will determine whether it’s guilty or not, the lawsuit does tell us that Lamborghini is willing to go up against dealers that, in its view at least, sell cars to flippers. What a world it would be if every automaker was as willing to do the same.
