FCA Updates U.S. Sales Reporting Process

Fiat Chrysler Automobiles NV promises more transparency in the way it reports monthly sales in the U.S., beginning with its July report next week.

Earlier this month the company acknowledged the FBI and U.S. Securities and Exchange Commission were investigating allegations that some dealers were paid to pad their sales numbers by reporting sales at the end of the month, then reversing them at the beginning of the following month.

FCA issued a lengthy explanation earlier today about how it has reported sales in the past. It also notes there is no standardized reporting system within the U.S. auto industry. FCA emphasizes that any manipulation of end-of-month sales numbers has had no impact on the company’s revenue.

FCA used its new reporting system to recalculate monthly sales results from the beginning of 2011. Previously the company had boasted an uninterrupted six-year run of year-on-year sales gains. The new system shows that FCA’s U.S. sales streak actually ended in September 2013, when its sales shrank 3%.

The company says its sales also dipped in August 2015 (to -1% from +2%) and May 2016 (to -7% from +1%). On the other hand, the new reporting system found sales were higher than originally reported in 2011, 2014 and 2015. The net swing over six years is about 4,500 over-reported sales, according to FCA.