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    Dealerships accuse Fiat Chrysler of falsifying U.S. sales


    • FCA slapped with lawsuit accusing the manufacturer of racketeering.

    Two Chicago area dealership groups have filed a lawsuit against Fiat Chrysler Automobiles accusing the auto manufacturer of falsifying monthly sales figures in the U.S. FCA says the allegations are without merit.

    FCA has reported 69 monthly sales gains in the years since its bankruptcy in 2009.

     

    In the lawsuit, the one of dealerships claim that they were offered $20,000 to falsely report the sales of 40 new vehicles on the final day of a month. Those sales would then be backed out on the first day of the next month preventing the warranty clock on those vehicles from starting.

     

    The lawsuit further alleges that FCA rewards dealers who falsify the sales reports with a greater allocation of the best selling vehicles.

     

    Source: Automotive News

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    Will be watching this closely. If it gets ugly, I bet we see some changes at the executive level all the way back to Italy.

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    Will be watching this closely. If it gets ugly, I bet we see some changes at the executive level all the way back to Italy.

     

     

    Sergio isn't going anywhere til retirement. What I really wanna kno is what exactly were FCA's numbers then. That 7% Increase might not be exactly what we heard it was at end of the year 2015

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    If this is true it could really be major trouble.

    Stock was stopped when it dropped at 9.8% in Europe if I heard correctly before being suspended.

    The lawsuit is not as bad as it could get if the federal government gets involved. This is the kind of stuff people go to jail over if they can identify who made the call to do this. Even if they do not pin it on anyone the stock will take a hit anyways.

    No Stu this is not an attack just what the media and Wall St people are saying. I hope this is proven false as this could really be as bad.

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    If this is true it could really be major trouble.

    Stock was stopped when it dropped at 9.8% in Europe if I heard correctly before being suspended.

    The lawsuit is not as bad as it could get if the federal government gets involved. This is the kind of stuff people go to jail over if they can identify who made the call to do this. Even if they do not pin it on anyone the stock will take a hit anyways.

    No Stu this is not an attack just what the media and Wall St people are saying. I hope this is proven false as this could really be as bad.

     

    If this allegation turns out to be true... the Securities and Exchange commission doesn't tend to take too kindly to lying to shareholders.  The racketeering charge is child's play in comparison. 

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    If this allegation turns out to be true... the Securities and Exchange commission doesn't tend to take too kindly to lying to shareholders.  The racketeering charge is child's play in comparison.

    Yes that is what I mean. This one would include the S&E as well as justice department and others as this breaks laws under several areas.

    This could be bad enough they will wish they lied and cheated on Diesel emissions.

    Edited by Drew Dowdell
    fixed up your quoting mishap
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    I was just thinking. Sergio made a big deal on how he was no longer wanting to go after a hostle take over with investors.

    ​I am betting he backed off when they saw this coming as it would not look good to be claiming the hostle take over with new investors while getting sued for lying about sales and volume. Even if he did not know about it this would be enough to bring charges.

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    Will be watching this closely. If it gets ugly, I bet we see some changes at the executive level all the way back to Italy.

     

     

    Sergio isn't going anywhere til retirement. What I really wanna kno is what exactly were FCA's numbers then. That 7% Increase might not be exactly what we heard it was at end of the year 2015

     

     

    It would be interesting to see the real numbers if the books were cooked. I know jeep sales are doing well but what numbers did they falsify?

     

    Sergio had better hope that their books are fully in order.  You know the family will let him hang in the wind on this no matter what if it proves to be true.

    Edited by hyperv6
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    Will be watching this closely. If it gets ugly, I bet we see some changes at the executive level all the way back to Italy.

     

     

    Sergio isn't going anywhere til retirement. What I really wanna kno is what exactly were FCA's numbers then. That 7% Increase might not be exactly what we heard it was at end of the year 2015

     

     

    It would be interesting to see the real numbers if the books were cooked. I know jeep sales are doing well but what numbers did they falsify?

     

    Sergio had better hope that their books are fully in order.  You know the family will let him hang in the wind on this no matter what if it proves to be true.

     

    Gut tells me they fried Fiat Numbers, Chrysler / Dodge numbers. I truly believe Jeep and Ram are just fine.

     

    Look at your local FIAT dealers and tell me how they are selling as many as they are when you see not just 30-50 autos on the lot but hundreds of them. The FIAT dealers in the greater Puget Sound area all have around 200-300 fiats in stock. You cannot tell me they are moving that many each month when I hardly see them on the roads. They are one of the most terribly made products right with Mini. There are way too many FIATS that are under 10K miles 2 years old or under 5K 1 year old for sale plus hundreds of new ones.

     

    The product should die and go away. Chrysler / Dodge can do a better subcompact / compact than Fiat.

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    I will wait for proof (as all should).  You would think if they were fudging numbers that it would be making a much better showing as what it is showing right now (outside of he 500x, which is still getting crushed in it's segment).  Also, couldn't this be confirmed or denied via checking new vehicle registrations?  If it is, it is, but the accusation seems off as everything outside of Jeep and ram is only doing decent (Chrysler/Dodge) or in $h!'s creeks (Fiat). 

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    Well just showing your shareholders you're not going under could be enough to lie about it. If you show terrible numbers and all investors bail.. then you're more scored. If you show massive gains then it is obvious. Just show small gains or staying afloat might be able to fly under the radar. 

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    Like anything, regardless of who it effects, there still needs to be proof out there.  So far all we have is hearsay. 

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    From reading the lawsuit, it could be localized....  perhaps one bad apple in the form of a regional manager.

    So you are thinking this could be a district manager trying to make himself look good for promotion or just to keep his job.

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    Yeah, I read that the two dealers filing the complaint have been under-performing for years, so they're not getting corporate benefits and as such, they have motive to lie. I'm sure an investigation will reveal the truth soon enough.

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    From reading the lawsuit, it could be localized....  perhaps one bad apple in the form of a regional manager.

    So you are thinking this could be a district manager trying to make himself look good for promotion or just to keep his job.

     

     

    Purely hypothesis and speculation... but yes.

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    That does sound more plausible, especially considering both dealerships were from the same area.  If true i don't see one region making that large of an impact on overall sales. 

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    More needs to be learned.

    ​If both cases get tossed then odds are there is nothign to this. If the cases get settled then the goverment may move in to investigate and it will be based on that.

     

    I just hope this proved false.

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      132,579
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      3,288
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      View full article
    • By William Maley
      A group of Shelby GT350 owners are not happy with Ford.
      Yesterday, a lawsuit was filed in the U.S. District Court for the Southern District of Florida claiming that the track-ready GT350 isn't. According to filling, owners complain that the vehicle overheats in as little as 15 minutes due faulty transmissions and rear differentials when driven on a track. When the vehicle does overheat, it goes into a limp mode that reduces power to protect the powertrain. The filing goes on to say that Ford fixed this issue in the 2017 model, but told owners of the 2016 model to make the fixes themselves - a possible breach of the car's warranty.
      “When Ford marketed and sold these Shelby GT350 Mustangs, it knew exactly how to appeal to track-enthusiasts: it marketed enhanced performance in a limited-edition iconic vehicle that has been associated with racing for generations,” said Steve Berman, managing partner of Hagens Berman, the law firm handling the case.
      “We believe that Ford induced purchasers with its ‘track-ready’ marketing, when in fact it knew that this defect would ultimately bar these Mustangs from ever being the hotrod consumers paid for.”
      At the moment, the lawsuit has four named plaintiffs. Hagens Berman estimates about 4,000 owners are affected by this issue. 
      “Ford is committed to providing our customers with top-quality vehicles. However, we do not comment on pending litigation,” said Ford spokesman Bradley Carroll to The Detroit News.
      Source: Automotive News (Subscription Required), The Detroit News
    • By William Maley
      FCA US Reports February 2017 U.S. Sales
      Ram Truck brand sales up 4 percent compared with same month a year ago Three Jeep® brand vehicles record sales increases in February; Jeep Grand Cherokee sales up 11 percent Three Dodge brand vehicles post sales increases in February; Dodge Journey sales up 55 percent  February 1, 2017 , Auburn Hills, Mich. - FCA US LLC today reported U.S. sales of 168,326 units, a 10 percent decrease compared with sales in February 2016 (187,318 units).
       
      In February, fleet sales of 44,898 units were down 26 percent year over year as FCA US continues its strategy of reducing its sales to the daily rental segment. Fleet sales represented 27 percent of total FCA US sales in February. FCA US retail sales of 123,428 units were down 3 percent for the month, and represented 73 percent of total February sales.
       
      Ram Truck brand sales were up 4 percent in February, compared with the same month a year ago. Three Jeep® brand vehicles topped February sales from a year ago, including the Jeep Renegade with an 11 percent increase. Sales of the Jeep Grand Cherokee, the brand’s volume leader in February, were up 11 percent as well. Three Dodge brand vehicles recorded year-over-year sales increases in February led by the Dodge Journey’s 55 percent sales gain. Sales of the Fiat 500 and the all-new Chrysler Pacifica minivan were up year over year as well.
       
      Ram Truck Brand
      Ram Truck brand sales were up 4 percent in February, compared with the same month a year ago. Sales of the Ram pickup truck increased 5 percent year over year in the month. The brand introduced new special-edition Night packages for Ram 2500 and 3500 HD pickup trucks at the 2017 Chicago Auto Show in February. The new Night editions further expand the Ram factory-custom truck family from the half-ton Ram 1500 announced in September 2016 to the brand’s three-quarter and one-ton models. Production of the 2017 Ram HD Night models began in early February.
       
      Dodge Brand
      The Dodge Challenger, Dodge Journey, and Dodge Viper each posted sales gains in February, led by the Journey’s 55 percent year-over-year increase. The Challenger turned in a 19 percent increase, while Viper sales were up 23 percent in the month. The Dodge brand unveiled the new 2018 Dodge Durango SRT – America’s fastest, most powerful and most capable three-row SUV – at last month’s 2017 Chicago Auto Show. In addition, Kelley Blue Book’s KBB.com announced at the show that the Grand Caravan earned its 5-Year Cost to Own Award in the minivan category for the third time in four years. The awards honor the vehicles and brands (luxury and non-luxury) with the lowest projected ownership costs, based on Kelley Blue Book’s 5-Year Cost to Own data for new cars for the initial five-year ownership period.
       
      Jeep Brand
      Three Jeep brand models recorded sales increases in February. Both the Jeep Grand Cherokee – the brand’s volume leader for the month – and the Jeep Renegade posted 11 percent year-over-year sales increases. In addition, the Jeep Wrangler logged a 2 percent increase in February. Jeep brand retail sales were up year over year in February. The latest Wrangler – the new 2017Jeep Wrangler Rubicon Recon – debuted at the Chicago Auto Show last month, featuring improved off-road prowess with a stronger front axle, enhanced rock rails and heavy-duty cast differential covers. Also last month, KBB.com announced at the Chicago Auto Show that the Jeep Wrangler Unlimited earned its 5-Year Cost to Own Award in the Mid-size SUV/Crossover category for a third-consecutive year.
       
      FIAT Brand
      Sales of the Fiat 500 were up 1 percent in February, compared with the same month a year ago. Sales of the new Fiat 124 Spider were up 26 percent compared with the previous month of January. The 124 Spider was named in February as one of the Best Cars for the Money in the Sports Car category by U.S. News & World Report. In addition, the Fiat 124 Spider Abarth, according to the valuation experts at Hagerty, is one of 10 vehicles this year that stand out as the likeliest to grow in value and appeal to classic car enthusiasts. That puts the 124 Spider Abarth on the “Hagerty Hot List” for 2017. 
       
      Chrysler Brand
      Sales of the all-new 2017 Chrysler Pacifica – the most awarded minivan of 2016 and 2017 – were up in its second month of year-over-year comparisons, and increased 36 percent compared with sales in the previous month of January. The Pacifica continues to earn a plethora of awards and accolades in 2017. In February, the Pacifica was named Best Minivan for the Money by U.S. News & World Report, 2017 Family Vehicle of the Year by the Midwest Automotive Media Association (MAMA), and MotorWeek’s 2017 Drivers’ Choice Award for Best Minivan. The Chrysler 300 full-size sedan turned in a 2 percent year-over-year increase in February.
        
      Alfa Romeo Brand
      Alfa Romeo brand sales of 443 units were up 843 percent compared with the same month in 2016.
       
      Maserati Brand
      Maserati brand sales of 1,087 units were up 49 percent compared with the same month a year ago.
       
      U.S. Sales Summary February 2017
                Month Sales
      Vol %
      CYTD Sales
      Vol %
      Model
      Curr Yr
      Pr Yr
      Change
      Curr Yr
      Pr Yr
      Change
      Compass
      2,737
      8,893
      -69%
      5,901
      15,164
      -61%
      Patriot
      5,512
      11,363
      -51%
      10,212
      19,947
      -49%
      Wrangler
      13,641
      13,349
      2%
      24,975
      24,336
      3%
      Cherokee
      13,615
      15,353
      -11%
      26,166
      32,136
      -19%
      Grand Cherokee
      18,925
      16,990
      11%
      36,226
      30,965
      17%
      Renegade
      7,915
      7,115
      11%
      17,280
      13,282
      30%
      JEEP BRAND
      62,345
      73,063
      -15%
      120,760
      135,830
      -11%
      200
      2,194
      6,259
      -65%
      4,055
      10,944
      -63%
      300
      5,386
      5,304
      2%
      10,094
      10,969
      -8%
      Town & Country
      108
      11,645
      -99%
      246
      23,028
      -99%
      Pacifica
      9,042
      71
      New
      15,712
      110
      New
      CHRYSLER BRAND
      16,730
      23,279
      -28%
      30,107
      45,051
      -33%
      Dart
      1,683
      5,824
      -71%
      3,080
      11,104
      -72%
      Avenger
      0
      6
      -100%
      0
      15
      -100%
      Charger
      6,930
      8,765
      -21%
      14,083
      17,547
      -20%
      Challenger
      6,107
      5,142
      19%
      9,500
      10,803
      -12%
      Viper
      54
      44
      23%
      107
      72
      49%
      Journey
      9,906
      6,375
      55%
      22,542
      17,961
      26%
      Caravan
      13,682
      13,978
      -2%
      24,452
      24,933
      -2%
      Durango
      5,516
      6,851
      -19%
      10,223
      12,852
      -20%
      DODGE  BRAND
      43,878
      46,985
      -7%
      83,987
      95,287
      -12%
      Ram P/U
      39,046
      37,087
      5%
      72,815
      69,651
      5%
      Cargo Van
      0
      0
      0%
      0
      2
      -100%
      ProMaster Van
      2,648
      2,697
      -2%
      5,999
      5,039
      19%
      ProMaster City
      1,091
      1,509
      -28%
      2,016
      2,665
      -24%
      RAM BRAND
      42,785
      41,293
      4%
      80,830
      77,357
      4%
      Giulia
      412
      0
      New
      482
      0
      New
      Alfa 4C 
      31
      47
      -34%
      69
      115
      -40%
      ALFA BRAND
      443
      47
      843%
      551
      115
      379%
      500
      1,131
      1,120
      1%
      2,349
      2,101
      12%
      500L
      72
      370
      -81%
      178
      727
      -76%
      500X
      640
      1,161
      -45%
      1,240
      2,202
      -44%
      Spider
      302
      0
      New
      542
      0
      New
      FIAT BRAND
      2,145
      2,651
      -19%
      4,309
      5,030
      -14%
      TOTAL FCA US LLC
      168,326
      187,318
      -10%
      320,544
      358,670
      -11%
          Total Car & MPV
      47,134
      58,575
      -20%
      84,949
      112,468
      -24%
          Total UV's
      78,407
      87,450
      -10%
      154,765
      168,845
      -8%
          Total Truck & LCV
      42,785
      41,293
      4%
      80,830
      77,357
      4%
                    MASERATI BRAND
      1,087
      728
      49%
      1,976
      1,253
      58%

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