FCA Dealers in Italy Say Factory Sent Them Cars They Didn’t Order
Fiat Chrysler Automobile NV dealers in Italy claim the company invoiced them for 6,000 vehicles they didn’t order, Automotive News Europe reports.
Fiat Chrysler Automobile NV dealers in Italy claim the company invoiced them for 6,000 vehicles they didn’t order, Automotive News Europe reports.
The vehicles, mostly Fiat-brand Tipo small cars (pictured) and Ducato large vans, represent some €90 million ($96 million) in unwanted inventory, according to the dealers. Some say their supplies of Tipos had ballooned to nine months—roughly four times the normal amount—before the unwanted orders were added.
ANE notes the move hiked FCA’s first-quarter wholesale deliveries and increased reported revenue for the period. CEO Sergio Marchionne told reporters earlier that January-March would be the company’s weakest quarter in 2017.
UCIF, the organization that represents FCA dealers in Italy, says the unwanted orders violates dealer franchise contracts. It has counseled the retailers to request special sales incentives for the extra inventory.