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FCA Blasts Dealer Sales Reporting Lawsuit as Baseless
Fiat Chrysler Automobiles NV has condemned a lawsuit claiming the company pushed some of its U.S. retailers to falsify sales reports as the baseless claims of two disgruntled and chronically underperforming dealers.
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Fiat Chrysler Automobiles NV has condemned a lawsuit claiming the company pushed some of its U.S. retailers to falsify sales reports as the baseless claims of two disgruntled and chronically underperforming dealers.
The lawsuit alleges that FCA paid some dealers to report inventory as sold on the last day of the month, then reverse the deals a day later. The plaintiffs say the company used the scheme to post 69 consecutive months of year-on-year sales gains.
But in a bluntly worded retort, FCA portrays the dealers as underachievers who have used the threat of litigation to gain special favors, including being awarded additional franchises in the FCA dealer network.
The company says the plaintiffs have repeatedly refused to produce any evidence to support their claims. It adds that FCA’s own investigation found the allegations baseless. The two dealers have “consistently failed” to meet performance standards they agreed to when they joined the company’s retail network, according to FCA.
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