Notices
News & Rumors Archives Useful threads, previous Cars of the Week, and more.

Car dealer sues Mercedes over faulty $1.7 million CLK-GTR

Thread Tools
 
Old 06-16-2006, 06:33 PM
  #1  
Ochdx
Senior Member
Thread Starter
 
Ochdx's Avatar
 
Join Date: May 2002
Posts: 1,388
Likes: 0
Received 0 Likes on 0 Posts
Default Car dealer sues Mercedes over faulty $1.7 million CLK-GTR

When Los Angeles car dealer Mark Johnston forked over $1.7 million to buy one of only five special Mercedes Benz CLK-GTR roadsters produced in the world, he could not have predicted the long struggle he was about to face. Johnston claims he and his brother couldn’t get it to travel more than ten blocks. Accordingly, he has filed suit in Los Angeles Superior Court seeking a full refund from the manufacturer and its affiliates. The defendants named in the suit are DaimlerChrysler and its Mercedes-Benz subsidiary.


Mr. Johnston’s suit, brought by law firm Fulbright & Jaworski L.L.P., accuses the defendants of breaching their contractual and warranty obligations to provide a defect-free car, in this case a Mercedes AMG CLK-GTR Limited Edition Roadster, which Mr. Johnston intended to sell through his dealership. The complaint also alleges negligent misrepresentation and breach of the implied warranty of good faith and fair dealing. Mr. Johnston seeks full reimbursement of the vehicle’s purchase price, along with the other costs incurred as a result of attempts to repair it.


The silver AMG Roadster is a product of DaimlerChrysler’s long collaboration with H.W.A. and Mercedes-AMG, two German manufacturers of racing and high-end performance vehicles. Only five of the AMG roadsters were reportedly made; Mr. Johnston owns the only one in North America. The AMG CLK-GTR is listed in the Guinness Book of World Records as the most expensive production car ever made. The two-door sports car is made of carbon fiber monocoque with an integrated steel roll cage and front energy absorbing crash box. The 6.9-liter engine has a 12-cylinder, 60 degree V-motor, enabling the car to go from zero to 124 mph in 9.9 seconds and reach a top speed of 198.4 mph.


Mr. Johnston and his brother Ernest own Grand Prix Motors, a car dealership in the Mar Vista section of Los Angeles. The two former auto mechanics have extensive experience working on Ferraris and other top performing vehicles and are very knowledgeable about collectible cars. Grand Prix contracted to purchase the Mercedes AMG in 2002 for the hefty price tag of $1.7 million. Their intention was to sell the vehicle through their dealership, as they had done with other rare and vintage automobiles.


“The car was absolutely gorgeous and we were excited about offering what we thought was a true gem to our customer base,” Mark Johnston explained. “Unfortunately, the car turned out to be ‘exotic’ in the worst possible way. When we took it off the lot in 2004 for its first customer test drive, Ernie drove the car all of ten 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.”


According to the complaint, the roadster’s transmission failed to shift properly. Additionally, the hydraulic jack system failed and the windows became unglued. In 2005, the defendants dispatched a technician from Germany to examine the car in 2005; after dismantling it, the mechanic returned to Germany with a number of parts that were never reinstalled. Mr. Johnston asserts that the defendants later instructed Grand Prix to transport the non-working car to a Mercedes facility in Lake Park, Florida, which Grand Prix did at an additional cost of $10,000.


Although the Mercedes technicians determined that the car suffered an oil-pressure related engine failure and needed a new engine, the defendants were unwilling to make any repairs. The complaint asserts that the defendants were aware that several of the other Mercedes AMG roadsters in circulation had oil pressure-related problems.


“Mr. Johnston has exhausted himself trying to get Mercedes and the other defendants to recognize their warranty obligations,” said John O’Malley, the Fulbright & Jaworski partner in Los Angeles who is representing Grand Prix Motors. “You’d think you’d be able to drive a $1.7 million car more than 10 blocks.”


“We continue to be dumbfounded by the unwillingness DaimlerChrysler, Mercedes and the other defendants have shown in owning up to the problems of their vehicle — the other manufacturers we deal with would never operate this way,” explained Mr. Johnston. “It’s unfortunate the defendants have forced us to bring a lawsuit in order to have our contract honored. We obviously cannot sell the car in its current condition, which right now represents nearly $2 million of scrap metal.”
Old 06-18-2006, 12:57 AM
  #2  
stickyshifter
Senior Member
 
stickyshifter's Avatar
 
Join Date: Aug 2003
Location: NY
Posts: 650
Likes: 0
Received 0 Likes on 0 Posts
Default

But it's only 2 million dollars of scrap metal! Eat it up dude!


It would be pretty interesting to see how it gets resolved.
Old 06-18-2006, 10:39 AM
  #3  
Ochdx
Senior Member
Thread Starter
 
Ochdx's Avatar
 
Join Date: May 2002
Posts: 1,388
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by stickyshifter
But it's only 2 million dollars of scrap metal! Eat it up dude!


It would be pretty interesting to see how it gets resolved.
It will not. Mercedes engineers are too incompetent to repair it. At best they will refund the money and trash the car.
Old 07-20-2006, 10:26 AM
  #4  
GSRRacer95
Fight On!
 
GSRRacer95's Avatar
 
Join Date: May 2004
Location: Spokompton,WA
Posts: 11,425
Likes: 0
Received 0 Likes on 0 Posts
Default

Anyone heard any updates on this?
Old 07-22-2006, 02:54 PM
  #5  
lexusis350
Junior Member
 
lexusis350's Avatar
 
Join Date: Aug 2005
Posts: 252
Likes: 0
Received 0 Likes on 0 Posts
Default

Toyota should get sued for every car they have to recall. This is the only way they will learn that they need to build quality cars, not crap.
Old 07-22-2006, 08:50 PM
  #6  
TheOtherDave™
Apathy Kills
 
TheOtherDave™'s Avatar
 
Join Date: Nov 2002
Location: The Left Lane
Posts: 60,714
Received 0 Likes on 0 Posts
Default

Originally Posted by lexusis350
Toyota should get sued for every car they have to recall. This is the only way they will learn that they need to build quality cars, not crap.
In case you fell asleep at the keyboard, this thread has nothing to do with your latent hatred of Toyota Motor Company.

If all you plan to do is talk trash and disrupt threads with your irrelevant comments, take a hike.
__________________
:: :ToDspin: - supermod - but who gives a shit?

:: HAN Integra FAQ: If, by some miracle, yours hasn't been stolen... check it out!
Old 07-24-2006, 10:42 AM
  #7  
autofreak
Senior Member
 
autofreak's Avatar
 
Join Date: Jul 2005
Posts: 297
Likes: 0
Received 0 Likes on 0 Posts
Default

It brings a whole new meaning to " you get what you pay for".
Old 07-24-2006, 06:39 PM
  #8  
lexusis350
Junior Member
 
lexusis350's Avatar
 
Join Date: Aug 2005
Posts: 252
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by autofreak
It brings a whole new meaning to " you get what you pay for".
I agree, but every car has some sort of issue. Honda has much less but they all have some problems. No car is perfect.
Old 07-24-2006, 09:58 PM
  #9  
Ochdx
Senior Member
Thread Starter
 
Ochdx's Avatar
 
Join Date: May 2002
Posts: 1,388
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by lexusis350
I agree, but every car has some sort of issue. Honda has much less but they all have some problems. No car is perfect.
Are you just an instigator, or living in the lala land?
Old 07-25-2006, 04:52 AM
  #10  
jaje
HC Racer H5
 
jaje's Avatar
 
Join Date: May 2000
Location: KCK
Posts: 4,261
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by lexusis350
I agree, but every car has some sort of issue. Honda has much less but they all have some problems. No car is perfect.
i completely agree with you...no car is perfect even almighty Toyota...i consistently choose a Honda b/c of its corporate culture and how engineers typically hold the very highest positions...i'd rather have my safety in the hands of them rather than accountants or PR people



All times are GMT -8. The time now is 01:36 PM.