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The Honolulu Advertiser
Posted on: Thursday, October 25, 2007

Hawaii buyer sues over 'lemon' Lamborghini

By Sean Hao
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Morrie Stoebner's Lamborghini sits in his parking space, unused for more than a year because of defects Stoebner says make it inoperable. He's suing the Italian carmaker.

BRUCE ASATO | The Associated Press

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LAMBORGHINI MURCIELAGO

GENERAL INFORMATION

Price: $285,579

Miles per gallon: 9 city, 13 highway

Configuration: mid-engine, all-wheel drive

ENGINE

Type: V12

Displacement: 6.2 liter

Horsepower: 580 bhp

PERFORMANCE

0-60 mph: 3.6 sec

Quarter mile: 12 seconds at 121 mph

Top speed: 205 mph

Source: Lamborghini, Advertiser research

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Auto dealer Morrie Stoebner thinks he knows a lemon when he sees it. These days the owner of Honda Windward said he doesn't have to look farther than his own parking space, which houses a yellow Lamborghini Murcielago purchased for $285,579.

The sleek "super car," which can hit speeds in excess of 200 miles per hour, is at the heart of a legal dispute between one of Hawai'i's biggest Honda dealers and one of the world's leading exotic carmakers.

Stoebner, 67, is suing Sant'Agata Bolognese-based Automobili Lamborghini in U.S. District Court for breach of warranty, claiming the carmaker failed to timely repair problems that put the Murcielago out of service for a year.

Stoebner says the Lamborghini, which was purchased in July 2002, required frequent dealer visits and replacement parts, including a new lift system, clutch, at least two gearboxes and other components.

"Once, during one of many trips to the dealership for repairs, the wing spoiler broke off and was hanging on the car as it entered the service department," Stoebner said. "It seemed that every time I sat in the car something would break."

In court filings, Lamborghini says it fixed the car's problems and that certain defects occurred after the car's warranty expired. Lamborghini also extended the car's two-year, 24,000-miles warranty by one year after problems with the car surfaced. Lamborghini spokesman Rene Sueltzner, who declined to comment on the case, referred questions to a company attorney who was unavailable for comment.

With its hefty price tag and spirited engine, the Lamborghini Murcielago belongs to the upper echelon of Italian-made exotic cars with the likes of Ferrari. Primarily toys for the wealthy, the cars are produced in low volumes with less factory automation than for typical cars, said Karl Brauer, editor of automobile consumer research Web site Edmunds.com.

These hands-on production methods, coupled with strict tolerances required by such performance cars, result in a wider variation in quality and more problems than in lower-priced, high-volume production cars, he said.

"These (exotic cars) are some of the most expensive cars on the market," Brauer said. Yet, "they're probably, typically, on average, the most problematic in terms of having stupid little things go wrong that shouldn't go wrong on a $20,000 car. That's just the nature of the beast."

Stoebner, who has owned two Ferraris, said his dream of owning a Lamborghini began in the 1960s. Stoebner, then a salesman in California, said he fell in love with his boss's Lamborghini. However, Stoebner said, his excitement over his own purchase faded after he noticed mismatched paint on some of the car's panels and a grinding noise in the transmission.

During the car's first 3,000 miles, it needed several repairs that put it out of service for a year, Stoebner said. He said he decided to sue Lamborghini after the automaker declined to purchase the car back at a reduced price. He's seeking compensation for lost use of the car and diminished value because of the car's lengthy repair history.

"Anybody that buys a car like that basically is going to want a service record," Stoebner said. "It's not worth as much with that type of a service history."

Such a high number of problems is unusual, but not unheard of when it comes to exotic cars, said Edmunds.com's Brauer.

"None of this is as big of a deal if it's a non-exotic" car, Brauer said. "You want the service records when you buy this type of car and you don't want stories to go along with those service records."

Stoebner said he originally sought restitution under the state's Lemon Law, which is meant to protect consumers when new cars have repeated warranty problems. However, Stoebner said he doesn't qualify for Lemon Law protection because the Lamborghini was purchased by auto dealer Stoebner Motors Inc., which does business as Honda Windward.

A December trial date has been set in the case. In an earlier hearing, District Judge Michael Seabright ruled that Lamborghini did not breach its warranty regarding the car's mismatched paint because Stoebner rejected an offer to re-paint the Murcielago. Stoebner wanted monetary compensation.

Meanwhile, the 6.2-liter, 580-horsepower Lamborghini sits parked in a Honolulu garage. Stoebner said he cannot drive the car because the gauges are inoperative and the rubber control buttons are deteriorated.

"I haven't driven it in maybe over a year," he said. "Right now the gauges don't work, so I don't know if it's got gas in it."

Reach Sean Hao at shao@honoluluadvertiser.com.