Chrysler News: Fiat Chrysler Automobiles Under Investigation Over Sales Reporting

[William Maley]

Fiat Chrysler Automobiles is facing an investigation by the U.S. Department of Justice and Securities and Exchange Commission over their sales reporting practices. Bloomberg learned about the investigation from two sources this morning and since then, FCA has confirmed it.

 

This investigation stems from lawsuits filed earlier this year by dealers in Florida and Illinois saying the automaker inflated sales numbers by having them file false 'New Vehicle Delivery Reports'. At the time, FCA denied the charges made and is seeking dismissal of the suit.

 

But as Automotive News notes, FCA added a disclaimer to their sales reports in April about how sales are reported.

“FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month. Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system.”

 

Investigators from the FBI and SEC visited various FCA field staff at their homes and offices on July 11th. That same day saw federal attorneys visit FCA's headquarters to gather information. According to a source, FCA employees were advised not to speak with investigators without counsel.

 

In a statement today, FCA said that it would "cooperate fully" with the SEC investigation into its "reporting of vehicle unit sales to end customers" in the U.S. It also mentioned that is has received similar inquiries from the DOJ and will cooperate with them.

 

The DOJ, FBI, and SEC declined to comment.

 

Source: Bloomberg, Automotive News (Subscription Required)

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[FordCosworth]

Talk about bad PR.

[G. David Felt]

Yea, Sergio is such a brilliant CEO Leader, Inspiring his people to Lie, Cheat and over all destroy what is left of Dodge, Ram, Chrysler & Jeep.

 

Such a sad turn, the idiots should have never allowed Fiat to buy the American Brands.

[Drew Dowdell]

Serg is the biggest detriment to FCA

[ccap41]

Stupid idiots. How do you do something like this and not expect it to make it through SEC? How many accountants allowed this to knowingly happen? f@#ks should be fired.

I hate it because of how many ppl had to have known something and turned the other cheek all while penalizing EVERY shareholder who's trying to help your corporation and themselves.

Basically. Thieves.