mercedes lemon - PeachParts Mercedes-Benz Forum

blueranger · #1 06-15-2006, 01:43 AM

World's most expensive lemon?
Dealership says $1.7 million car won't run and maker Mercedes-Benz won't fix it.
June 14, 2006: 9:07 PM EDT

NEW YORK (CNNMoney.com) - The owner of a Los Angeles car dealership is suing Mercedes-Benz, its parent company DaimlerChrysler and other affiliates, alleging that a $1.7 million car purchased in 2004 wouldn't run for more than 10 blocks without problems.

The car, a Mercedes-Benz AMG CLK-GTR Limited Edition Roadster, was supposed to be one of only five made. In the lawsuit, the owner of exotic car dealership Grand Prix Motors also alleges that six were actually made, reducing the value of his car.

A two-door sports car, the CLK-GTR has a carbon fiber body and a 6.9-liter 12-cylinder engine enabling it to go from zero to 124 mph in 9.9 seconds. It has a top speed of 198.4 mph. It cannot legally be driven on public roads in the U.S. According to the dealership's Web site, the car's intended retail selling price was $2.5 million.

The car is believed to be the only one of its kind in the U.S., said plaintiff Mark Johnston.

"Unfortunately, the car turned out to be 'exotic' in the worst possible way," dealership owner Johnston said. "When we took it off the lot in 2004 for its first customer test drive, [dealership co-owner Ernest Johnston] drove the car all of 10 blocks with a prospective buyer when the oil light came on. We've been trying to get it fixed ever since, but the Mercedes folks have refused to stand behind the car as promised in our contract."

Additionally, according to Johnston, the car's transmission failed to shift properly, the hydraulic jack system failed and the car's window's came unglued. Mercedes ultimately determined that the car suffered from an oil pressure-related engine failure, the plaintiffs allege, but refused to make any repairs.

"It's unfortunate the defendants have forced us to bring a lawsuit in order to have our contract honored," said Johnston. "We obviously cannot sell the car in its current condition, which right now represents nearly $2 million of scrap metal."

Mercedes-Benz USA spokeswoman Donna Boland said she could not otherwise comment on the lawsuit since the car was purchased directly from Germany and not through Mercedes' U.S. arm.

Mercedes-Benz officials in Germany could not immediately be reached for comment.

The suit seeks a full refund of the car's purchase price as well as legal fees and other expenses.

Jim B. · #2 06-15-2006, 02:35 AM

Quote:

Originally Posted by blueranger

World's most expensive lemon?
Dealership says $1.7 million car won't run and maker Mercedes-Benz won't fix it.
June 14, 2006: 9:07 PM EDT

NEW YORK (CNNMoney.com) - The owner of a Los Angeles car dealership is suing Mercedes-Benz, its parent company DaimlerChrysler and other affiliates, alleging that a $1.7 million car purchased in 2004 wouldn't run for more than 10 blocks without problems.

The car, a Mercedes-Benz AMG CLK-GTR Limited Edition Roadster, was supposed to be one of only five made. In the lawsuit, the owner of exotic car dealership Grand Prix Motors also alleges that six were actually made, reducing the value of his car.

A two-door sports car, the CLK-GTR has a carbon fiber body and a 6.9-liter 12-cylinder engine enabling it to go from zero to 124 mph in 9.9 seconds. It has a top speed of 198.4 mph. It cannot legally be driven on public roads in the U.S. According to the dealership's Web site, the car's intended retail selling price was $2.5 million.

The car is believed to be the only one of its kind in the U.S., said plaintiff Mark Johnston.

"Unfortunately, the car turned out to be 'exotic' in the worst possible way," dealership owner Johnston said. "When we took it off the lot in 2004 for its first customer test drive, [dealership co-owner Ernest Johnston] drove the car all of 10 blocks with a prospective buyer when the oil light came on. We've been trying to get it fixed ever since, but the Mercedes folks have refused to stand behind the car as promised in our contract."

Additionally, according to Johnston, the car's transmission failed to shift properly, the hydraulic jack system failed and the car's window's came unglued. Mercedes ultimately determined that the car suffered from an oil pressure-related engine failure, the plaintiffs allege, but refused to make any repairs.

"It's unfortunate the defendants have forced us to bring a lawsuit in order to have our contract honored," said Johnston. "We obviously cannot sell the car in its current condition, which right now represents nearly $2 million of scrap metal."

Mercedes-Benz USA spokeswoman Donna Boland said she could not otherwise comment on the lawsuit since the car was purchased directly from Germany and not through Mercedes' U.S. arm.

Mercedes-Benz officials in Germany could not immediately be reached for comment.

The suit seeks a full refund of the car's purchase price as well as legal fees and other expenses.

A few random thoughts and questions:

(Note, We successfully -with help of a lawyer- successfully got a buyback and a refund on a "Lemon" 2001 new Volvo C70 - under California Lemon law, so sometimes there is a clear prima facie case and you can win)

For a new car, in California's Lemon laws, the car is an automatic prima facie lemon if it is brought in FIVE separate times, with five different mileage readings documented, to the Mercedes dealer to be fixed -I rather doubt this happened in this case (but maybe the closest dealer was over 10 blocks away and the car wouldn't make it - was it flatbedded??)

1. Would the California Lemon even Law apply to a car that "cannot be driven legally on US roads"

2. What is this dealer doing offering it for sale to the public, and for test drives on public roads, if it cannot be legally driven on public roads?
(Does the Equitable principle of "unclean hands" rear its head as a legal defense) and for that matter

3. Would the EPA/DOT have the right (see www.foreignborn.com) to seize and destroy this car if the car was not properly bonded, certified and approved for U.S. important?

4. How deep are the legal pockets of the Los Angeles Dealer? I'd think Daimler Chryslers legal department could have a field day "motioning" them to death, with demurrers, depositions, motions to quash, produce documents, motions for dismissal, failure to state a cause of action, cross complaints, etc etc etc

5. Was their "privity of contract", that is, did the dealer buy it from the person who they are suing? (Isn't that important to have cleared up - not clear from the newspaper who they bought it from - DB AG or who?)

6. Was the car purchased by the dealer in Germany - if so, is that the proper jurisdiction - Germany - for the law suit, under Germany's Lemon laws, if they have any - more grist for Lawyers perhaps, under "Conflicts of Laws" or "forum non conveniens" etc ???

7. What did the contract for sale say when the dealer signed it?
I know nothing but I think perhaps a little more "due diligence" may have been order, in a case like thisi. The lawyers are gonna be *real* busy on this one, I would think...

This kind of car ought to be kept off the public US highways anyway.

It would've likely gotten into the hands of some drunk Hollywood star, rapper or footballer who would tack it up on the PCH up by Malibu anyway

The car really belongs in the MB classic center in Stuttgart or Orange County....where it could be seen and enjoyed by many, with risk to nobody,
rather than being on the roads or to be crushed by US customs

It should make an interesting case anyhow

R Leo · #3 06-15-2006, 08:10 AM

Quote:

"It's unfortunate the defendants have forced us to bring a lawsuit in order to have our contract honored," said Johnston. "We obviously cannot sell the car in its current condition, which right now represents nearly $2 million of scrap metal."

Ahhh, nightmares of the überrich.

Palangi · #4 06-15-2006, 07:30 PM

Dang

Guess I better cancel my order..............

koop · #5 06-15-2006, 09:48 PM

It's not a lemon law case. Dealers don't have any rights under lemon laws, just consumers. Shoot, there probably isn't even a warranty.

BENZ-LGB · #6 06-15-2006, 10:12 PM

Quote:

Originally Posted by R Leo

Ahhh, nightmares of the überrich.

My thoughts exactly. I will never buy a $1.7m car...so no worries here.

TheDon · #7 06-15-2006, 10:13 PM

Quote:

"It's unfortunate the defendants have forced us to bring a lawsuit in order to have our contract honored," said Johnston. "We obviously cannot sell the car in its current condition, which right now represents nearly $2 million of scrap metal."

when did carbon fiber become scrap metal

fz500sel · #8 06-15-2006, 11:01 PM

my buddy (also a member here Larry Delor) had the rare opportunity to help a local independent MB mechanic work on one of these. Unfortunately, he didnt get to go on a test ride.

diametricalbenz · #9 06-16-2006, 02:06 AM

Quote:

Originally Posted by TheDon

when did carbon fiber become scrap metal

That just makes the metal worth that much more!

I wonder if they shipped it with a different crankcase oil that they were supposed to change before driving and then drove it anyways. Oops.

This reminds me of when I want to Lamborghini of BH to take my boss's SVTT in and they charged $2,500 to solder a resistor to stop the air bag light from giving an error!!

Jim B. · #10 06-16-2006, 02:16 AM

Quote:

Originally Posted by koop

It's not a lemon law case. Dealers don't have any rights under lemon laws, just consumers. Shoot, there probably isn't even a warranty.

Warranty is around the world or one lap of the Nurburgring, whichever comes first.