Campbell court case fallout continues

Fiat Chrysler Australia's legal action against former CEO Clyde Campbell may have inflicted collateral damage on a new player, UK firm Motortrak.

In an article published by Fairfax Media today, Mercedes-Benz, Jaguar Land Rover and Ford are all reviewing contracts in place with Motortrak – a self-proclaimed 'digital retail marketing agency' for the automotive industry.

Daimler AG has told Fairfax that its contracts with Motortrak to support online marketing activities in the USA and the Middle East are under review. It's also reported that Jaguar Land Rover is reviewing its contracts with Motortrak for the UK and South African markets, and Ford's contract with Motortrak for the Italian market is being reassessed.

Legal matters coming to light as Fiat Chrysler Automotive (FCA) Australia pursues Campbell through the courts have prompted the three big-name brands to reassess their relationship with Motortrak.

FCA is seeking to recover $30 million allegedly misappropriated or misused during Campbell's reign over the company's Aussie arm. At least some of that money is alleged to have been diverted to Motortrak – the company that had allegedly employed Campbell in the role of managing director for its Australian operations.

According to the article, court documents reveal that just before Christmas of 2010 – mere weeks after Campbell was appointed to head FCA in Australia – he signed a contract with Motortrak worth $690 a month for each dealer in FCA's combined Australian dealer networks.

The cost of the "web services" provided allegedly rose to $1695 per dealer, per month, with effect from May 2012. Three months after that, the contract with Motortrak was allegedly varied to increase the subscription price payable to Motortrak to $4100 from each dealer per month – and the contract was extended through to 2018.

FCA's statement of claim alleges Campbell "has, or appears to have, an interest in Motortrak and to have benefited personally from the Motortrak contract."

Campbell was the sales manager at Mercedes-Benz Australia between 2004 and 2007. He left Benz to join Motortrak, which was right around the time of the big DaimlerChrysler split.

During Campbell's three years with Motortrak, Chrysler went through Chapter 11 bankruptcy proceedings in the USA during the GFC. Chrysler was picked up by Fiat to become part of FCA. Fiat had already embarked on its acquisition of Chrysler by the time Campbell took the helm at Chrysler in Australia.

Around the time it's alleged he agreed to increase Motortrak's monthly payments to $1695, Chrysler Australia assumed responsibility for importation and distribution of the Fiat, Abarth and Alfa Romeo brands.

FCA's statement of claim further alleges that Campbell arranged a deal between Motortrak and Mercedes-Benz in North America just before he joined FCA Australia.

Motortrak in Australia is alleged in the statement of claim to have been the supply channel for cars driven by ostensible brand ambassadors Shane Warne, Elizabeth Hurley, Harry Kewell and Gary Ablett Jr. This was allegedly in breach of company governance rules.

FCA claims that since 2011 Motortrak has racked up $20 million in revenue, which is "substantially greater than the cost for similar web services provided by Motortrak itself and by competitors", according to the Fairfax report.

Heading Motortrak in the UK is Gary Pask, with whom it is claimed "Campbell has maintained a personal relationship" and who is alleged to have attended an Australian Dealer of the Year event in New Orleans in February 2013. That trip, coinciding with the Superbowl and the Pebble Beach Concours d'Elegance, was paid for by Campbell, who also attended, the writ alleges.

Fairfax Media has indicated that FCA has not responded to its questions  and according to Fairfax Media, FCA remains one of Motortrak's largest clients, with Motortrak still supporting Fiat, Chrysler, Dodge and Ferrari's website services.

Campbell's legal defence, according to Fairfax Media, revolves around the "scandalous" nature of the allegations, which lawyer Sam Bond has said are motivated by internal politicking at FCA.

The case has been deferred until Friday of this week (June 19), so stay tuned for further details.