Mexican Media Brands
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.
#legal
Share
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.
RELATED CONTENT
-
U.S. Justice Dept. Asks VW to Delay Diesel Cheating Report
The U.S. Dept. of Justice has asked Volkswagen AG not to release findings of an independent probe into the German carmaker's diesel emission cheating scandal.
-
Four Auto Companies Rank Among the World's Most Ethical
GM and Cooper Standard make the list for the first time, joining long-running honorees Aptiv and Cummins
-
Tesla Sued Over Fatal Crash of Car in Autopilot Mode
Tesla Inc. has been sued by the family of a California man whose Tesla Model X crossover vehicle crashed into a highway barrier last year while the car was operating in semi-autonomous Autopilot mode.