April 22:
A nearly yearlong squabble between gray-market importers and Ferrari of North America on its supercars is over—at least as it relates to 2001 model Ferrari 360s and 550 Maranellos.
“I’m looking forward to my first paycheck in 11 months,” said Lois Joyeusaz, CEO of J.K. Technologies. The Baltimore importer has been at the forefront of a battle with Ferrari to win U.S. Department of Transportation permission to import non-U.S.-spec 360s and 550s to the States.
Since last summer, Ferrari has argued against the importation of the non-U.S.-spec cars on grounds that the cars were substantially different than those Ferrari imports to the U.S. market—so different that importers could not readily modify them to meet U.S. standards. Ferrari’s uncharacteristically hard line took gray-market importers by surprise, because the company had rarely voiced objections to the imports in the past.
“We’ve taken the stance from the beginning that we are the protectors of the marque,” said Ferrari North America spokesman Jeff Ehoodin.
After months of bureaucratic wrangling, followed by on-site inspections of certified U.S. Ferraris and gray-market imports, on April 10 DOT officials ruled that Ferrari’s non-U.S. market cars are eligible for importation “because they are substantially similar to vehicles originally manufactured for importation into and sale in the United States” and are capable of being “readily modified” to comply with federal standards.
In most cases, using U.S. parts instead of non-U.S. parts could be readily accomplished to meet certification, DOT ruled.
Intricacies in the case went deep, with both sides accusing the other of misleading the government in some instances. For instance, Ferrari said non-U.S. 550 Maranellos lacked door beams required under federal crash standards. Ferrari maintained that importers would have to remove the exterior door skin to properly weld a steel bar into place that is already factory-installed in U.S.-spec models. DOT investigators determined the door beams were installed during the manufacture of U.S. and non-U.S. models, but Ferrari noted that importers provided a 550 Barchetta for comparison with a Maranello.
The Barchetta is fitted with door beams for all markets to provide structural strength for the roofless model, Ferrari said. Importers agreed to install U.S.-spec doors on cars without the bars.
The battle seems over for now, and importers are anxious to get to work on customers’ cars that have been in storage limbo, some since last spring. Importers estimate that dozens of cars have been on hold in the United States and Europe, awaiting the DOT ruling.
“It’s not a victory over Ferrari, it’s a victory for everybody—Ferrari, the importers and the customers,” said importer Dick Fritz of Amerispec. Fritz said consumers get more cars at better prices, while Ferrari learns the strength of the market, which may lead to additional production for the States. Ferrari still says significant differences exist, and that the cars can’t be readily modified for the States. Ferrari also says the DOT process was a win because importers agreed to make far more modifications than they had originally proposed. As for more availability, Ehoodin said Ferrari has no desire to increase build capacity beyond its current 4000 or so cars per year, no matter what U.S. demand might be.
April 24:
Despite a memo urging dealers to “monitor” gray market 2001 model year 360 and 550 Ferraris for compliance with federal mandates issued earlier this month, Ferrari says it doesn’t expect dealers to disassemble customer cars to verify that compliance. Some dealers read that directive into an April 10 memo asking them to examine gray market cars and “notify us if you believe that the car does not meet U.S. specifications.”
Ferrari North America spokesman Jeffrey Ehoodin said the point-by-point list of requirements was purely informational and not intended as an inspection order. “We’re not telling people to take apart cars,” he said.
Incidentally, the memo also reminds dealers that as of October 2000, non-U.S. spec cars do not carry a U.S. warranty.