Report: FCA Knew of Falsified U.S. Sales Reports in 2015

At least 5,000 phony car sales reported by U.S. dealers were discovered a year ago by an internal investigation ordered by high-level executives at Fiat Chrysler Automobiles NV, sources tell Automotive News.

The sales, for which there were no buyers, were quickly undone by dealers after being reported. The practice helped FCA declare an unbroken 75-month streak of year-on-year gains to date.

Dealer complaints about the falsified reports reached CEO Sergio Marchionne and U.S. sales chief Reid Bigland, according to one AN source. The source says Bigland put a stop to the practice, but it resumed this year. Three months ago Bigland, who also is CEO of Chrysler Canada, was given the additional duties of CEO of the company’s Alfa Romeo and Maserati brands.

The FBI and U.S. Securities and Exchange Commission launched their own probe into the cheating in early July. Their investigation follows a federal lawsuit filed in January by a Chicago-area dealer group that complained of factory pressure to inflate sales numbers. FCA has characterized that lawsuit as a groundless charge by dealers demanding special favors from the company.

AN says another source claims the turnover rate in FCA’s nine U.S. business centers is four times that of the industry overall. The source blames pressure from higher-level FCA executives to meet ambitious monthly sales targets.