Product Recall What: 2007 - 2008 Lamborghini Murcielago/ Lamborghini Murcielago Roadster* Recall Date: May 28, 2010 Why: In rare cases, the stress of the back and forth movement of gasoline inside the fuel tank during later and longitudinal acceleration, accompanied by vertical vibration could cause detachment of small spots welds holding the fuel pump support inside the fuel tank. A slow fuel leak could develop at the detached spot which could potentially result in a fire if an external ignition source is present [5]. Incidents: Lamborghini stated that there have been no incidents of fires, accidents, or injuries linked to the fuel tank defect [2]. Number of Units Sold: 428 ($350,000) [1]. When Sold: January 1999 to March 2010 *Source: National Highway Traffic Safety Administration (NHTSA) http://www-odi.nhtsa.dot.gov/cars/problems/recalls/results.cfm ETM591AntoineWilcher

Management issues Recognition of Problem: The cars effected by the recall totaled 428 and were manufactured in 2006 through 2008. Due to the limited number of cars manufactured worldwide, the problem was reported to the NHTSA on 14 May 2010. The problem was reported to the NHTSA without any reports of fires or other injuries as a result of the recall [2]. Lamborghini developed procedures to replace the fuel tank and sent them to their dealerships and their licensed repair and service centers [3]. Lamborghini asked the 428 consumers to bring their vehicle to their local dealership to have the fuel tank replaced free of charge. If the consumer already had the tank replaced prior to the recall, Lamborghini would reimburse the consumer’s expense to have the fuel tank replaced. Lamborghini began implementing the recall in June 2010. Speed of Response: The slow detection of the problem was due to limited vehicles being manufactured and no problems being reported. Lamborghini began replacing parts shortly after the recall was announced by the NHTSA. Responsibility: Lamborghini detected the problem and reported it to the appropriate consumer governing body. The car manufacture also developed procedures to correct the defect and implemented the fix without charging the consumer [1, 2]. ETM591AntoineWilcher

Impact Of Recall Legal Consequences: No articles could be found that reported any lawsuits related to the Lamborghini recall. There were also no articles that reported any additional government oversight as a result of the recall. Automobili Lamborghini S.p.A is subsidiary of Volkswagen Group. Reputation: The recall has not seemed to effected the reputation of Lamborghini. The manufacture is know for its exotic cars that are “made to order”. Even though the recall effected about 17% of their automobiles sold in 2007 through 2008, the manufacturer is still a symbol of wealth and prestige. Sales: There are no sales figure for 2010, but Lamborghini sales have declined for 2009. The company reported a decrease of about 38% automobiles sold, however, the decline in sales has been contributed with the worldwide economic downturn and not for any manufacturing defects [4]. ETM591AntoineWilcher

References [1] Chubb, P. (2010). Lamborghini Murcielago Recall: Raging Bull Fuel Leak. Retrieved from http://www.product-reviews.net/2010/05/24/lamborghini- murcielago-recall-raging-bull-fuel-leak/#more-100522. [2] Lienert, A. (2010). 2007 –’08 Lamborghini Murcielago Recalled Over Fire Hazard. Retrieved from http://www.insideline.com/lamborghini/murcielago/2007- 08-lamborghini-murcielago-recalled-over-fire-hazard.html. [3] Automobili Lamborghini S.p.A. (2010). Recall Campaign – Fuel Tank Replacement Murcielago Coupe. Retrieved from http://www- odi.nhtsa.dot.gov/acms/docservlet/Artemis/Public/Recalls/2010/V/RCRIT-10V215- 8228.pdf [4] Murthy, D. (2010). Lamborghini Reports Lower Sales in 2009. Retrieved from http://www.topnews.in/lamborghini-reports-lower-sales-2009-2256094. [5] Automobili Lamborghini S.p.A. (2010). Part 573 Notice of Automobili Lamborghini SpA Determination of Defect. (Release No. 10V-215). Bologna: Reggiani, M., Farmeschi, A. ETM591AntoineWilcher