A dispute between Bugatti and its Miami dealership has escalated to a federal lawsuit, following a disagreement over warranty labor rates. The dealer claims that requesting a higher hourly rate for warranty work resulted in lost service privileges and fewer allocations of the new Tourbillon hypercar.
At the heart of the conflict is Bugatti Miami’s request for an increase in reimbursement rates for warranty service. The dealership, operated by Braman Motors, initially secured approval for higher parts reimbursement earlier in 2024. The bigger issue arose when the dealer sought $1,350 per hour for warranty labor—a rate Bugatti later deemed excessive.
Negotiations between the parties led to a temporary agreement, with Bugatti agreeing to pay $1,100 per hour for the remainder of 2025, rising to $1,350 per hour from January 2026. However, Bugatti subsequently revoked the dealership’s authorization to perform warranty repairs, citing high markups on labor and parts. The automaker also indicated it would inform local owners that warranty servicing would no longer be available at the Miami location.
The lawsuit extends beyond service rates. Bugatti Miami alleges that the brand unfairly limited its allocation of the Tourbillon, the successor to the Chiron, to just two units, while a nearby Florida retailer reportedly received nine. With each new Bugatti valued at over $4 million, allocation disparities carry significant financial impact for dealers.
Additionally, Bugatti Miami accuses the manufacturer of engaging in direct-to-customer sales that may violate Florida franchise laws. According to the complaint, Bugatti handled reservations, pricing, terms, and contracts directly with customers for both the Chiron and Tourbillon models, bypassing traditional dealership processes.
Bugatti Miami is now asking the federal court to halt any changes to its dealer agreement while the legal process unfolds. The dealership argues that the alleged punitive actions over labor rates and allocations have undermined its business. Neither Bugatti nor the dealership has issued a public comment on the ongoing dispute.
This case highlights the complex relationship between luxury automakers and their retail networks, especially when margins and exclusivity are at stake. The hourly rates in question far exceed industry norms, reflecting both the high cost of Bugatti ownership and the unique demands of servicing hypercars. The conflict also draws attention to how allocation policies and direct sales strategies can impact dealer profitability and customer service. As the proceedings move forward, the outcome could set important precedents for manufacturer-dealer relations in the ultra-luxury segment, particularly in states with strict franchise protections. Dealers and manufacturers alike will be watching closely to see how labor rates, allocation fairness, and direct sales are addressed in court.
