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U.S. Opens Probe into FCA Sales Reporting Methods
The U.S. sales operations of Fiat Chrysler Automobiles NV are being investigated regarding allegations that some FCA dealers were paid to falsify retail sales reports.
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The U.S. sales operations of Fiat Chrysler Automobiles NV are being investigated regarding allegations that some FCA dealers were paid to falsify retail sales reports.
The probe by the FBI and U.S. Securities and Exchange Commission began earlier this month and has involved office and home visits by investigators in several states, including FCA’s U.S. headquarters in Auburn Hills, Mich., according to Bloomberg News.
Dealer members of the Chicago-area Napleton Automotive Group filed a federal lawsuit in January claiming FCA paid some dealers to report cars as sold on the last day of the month to bolster sales totals, then reverse the deals a day later before the paperwork was processed.
The lawsuit says FCA used the technique to report 69 consecutive months of year-on-year sales gains, thus making the company appear financial stronger than it was. FCA retorts that the lawsuit is a groundless complaint from two chronically underperforming dealers who have been trying to strong-arm the company to grant them special favors.
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