• Sign in to follow this  
    Followers 0

    Fiat Chrysler Automobiles Under Investigation Over Sales Reporting


    • Those amazing sales numbers posted by FCA last year are now being investigated by the SEC and DOJ

    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)

    0


      Report Article
    Sign in to follow this  
    Followers 0


    User Feedback


    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.

    1

    Share this comment


    Link to comment
    Share on other sites

    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.

    0

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

    ×   Your link has been automatically embedded.   Display as a link instead

    Loading...



  • Popular Stories

  • Today's Birthdays

    1. Raybob9289
      Raybob9289
      (50 years old)
    2. Z06C6Vette
      Z06C6Vette
      (28 years old)
  • Similar Content

    • By William Maley
      Fiat Chrysler Automobiles announced yesterday that it would be recalling 1,908,911 vehicles worldwide due to the airbags and seatbelt pre-tensioners possibly not deploying in the event of a crash. Approximately 1.4 million vehicles involved in the recall are in the U.S.
      In a statement released by FCA, the issue deals with a specific restraint control module and front impact sensor wiring.
      "The condition may occur when vehicles equipped with a particular occupant restraint control module and front impact sensor wiring of a specific design, are involved in certain collisions. If all these factors are present, there may be an increased potential for occupant injury.”
      The vehicles involved include,
      2010 Chrysler Sebring midsize car 2011-2014 Chrysler 200 midsize cars 2010-2012 Dodge Caliber compact car 2010-2014 Dodge Avenger midsize cars 2010-2014 Jeep® Patriot and Compass SUVs FCA says it is aware of three fatalities and five injuries possibly linked to this issue. The company has also said that it stopped using the affected parts and wire routing in newer vehicles.
      Fiat Chrysler Automobiles is currently working on a notification schedule to alert owners about the problem. If you have questions, you are asked to call FCA US Customer Care Center at 1-800-853-1403.
      FCA's recall comes a week after General Motors announced a similar recall for 4.3 million vehicles because of a software bug.
      Source: Reuters, Fiat Chrysler Automobiles
      Press Release is on Page 2


      Statement: Occupant Restraint Controller
      September 15, 2016 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 1.4 million vehicles in the U.S. to resolve a condition that may prevent air-bag and seat-belt pretensioner deployment capability in certain crashes.
      The condition may occur when vehicles equipped with a particular occupant restraint control module and front impact sensor wiring of a specific design, are involved in certain collisions.
      If all these factors are present, there may be an increased potential for occupant injury.
      This action was prompted by an FCA US analysis of certain field events and other vehicle data. The Company is aware of three fatalities and five injuries that may potentially be related to this condition.
      FCA US no longer uses the occupant restraint controllers or wire routing design found in the affected vehicles, which are:
      2010 Chrysler Sebring midsize car
      2011-2014 Chrysler 200 midsize cars
      2010-2012 Dodge Caliber compact car
      2010-2014 Dodge Avenger midsize cars
      2010-2014 Jeep® Patriot and Compass SUVs
      An additional 142,959 of these vehicles are subject to recall in Canada; 81,901 in Mexico, a population that includes the 2010 Chrysler Cirrus compact car; and 284,051 outside North America, which also includes the 2012-2013 Lancia Flavia midsize car.
      FCA US will advise affected customers when they may schedule service, which will be performed free of charge. Customers with questions may call the FCA US Customer Care Center at (800) 853-1403.

      View full article
    • By William Maley
      Fiat Chrysler Automobiles announced yesterday that it would be recalling 1,908,911 vehicles worldwide due to the airbags and seatbelt pre-tensioners possibly not deploying in the event of a crash. Approximately 1.4 million vehicles involved in the recall are in the U.S.
      In a statement released by FCA, the issue deals with a specific restraint control module and front impact sensor wiring.
      "The condition may occur when vehicles equipped with a particular occupant restraint control module and front impact sensor wiring of a specific design, are involved in certain collisions. If all these factors are present, there may be an increased potential for occupant injury.”
      The vehicles involved include,
      2010 Chrysler Sebring midsize car 2011-2014 Chrysler 200 midsize cars 2010-2012 Dodge Caliber compact car 2010-2014 Dodge Avenger midsize cars 2010-2014 Jeep® Patriot and Compass SUVs FCA says it is aware of three fatalities and five injuries possibly linked to this issue. The company has also said that it stopped using the affected parts and wire routing in newer vehicles.
      Fiat Chrysler Automobiles is currently working on a notification schedule to alert owners about the problem. If you have questions, you are asked to call FCA US Customer Care Center at 1-800-853-1403.
      FCA's recall comes a week after General Motors announced a similar recall for 4.3 million vehicles because of a software bug.
      Source: Reuters, Fiat Chrysler Automobiles
      Press Release is on Page 2


      Statement: Occupant Restraint Controller
      September 15, 2016 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 1.4 million vehicles in the U.S. to resolve a condition that may prevent air-bag and seat-belt pretensioner deployment capability in certain crashes.
      The condition may occur when vehicles equipped with a particular occupant restraint control module and front impact sensor wiring of a specific design, are involved in certain collisions.
      If all these factors are present, there may be an increased potential for occupant injury.
      This action was prompted by an FCA US analysis of certain field events and other vehicle data. The Company is aware of three fatalities and five injuries that may potentially be related to this condition.
      FCA US no longer uses the occupant restraint controllers or wire routing design found in the affected vehicles, which are:
      2010 Chrysler Sebring midsize car
      2011-2014 Chrysler 200 midsize cars
      2010-2012 Dodge Caliber compact car
      2010-2014 Dodge Avenger midsize cars
      2010-2014 Jeep® Patriot and Compass SUVs
      An additional 142,959 of these vehicles are subject to recall in Canada; 81,901 in Mexico, a population that includes the 2010 Chrysler Cirrus compact car; and 284,051 outside North America, which also includes the 2012-2013 Lancia Flavia midsize car.
      FCA US will advise affected customers when they may schedule service, which will be performed free of charge. Customers with questions may call the FCA US Customer Care Center at (800) 853-1403.
    • By William Maley
      If you think the Fiat Chrysler Automobiles' sales probe couldn't take an unexpected turn, then you would be wrong. The Wall Street Journal reports that federal investigators are asking questions about a phrase that was used by various executives to dealers and regional sales managers.
      According to sources, executives at FCA would use the phrase “unnatural acts department” during conference calls and one-on-one conversations. This phrase was to convey to dealers and regional sales managers to get more sales before the end of the month. Such solutions included selling vehicles at a loss or asking dealers to buy a number of vehicles that would be used for test-drives with customers. Investigators are trying to figure out if the phrase was used a way to rally the troops to meet sales targets or a key piece of evidence of whether or not FCA executives deceived the public by using this phrase to tell dealers to falsify sales numbers.
      As we reported back in July, FCA is currently under investigation by the U.S. Department of Justice and Securities and Exchange Commission over their sales reporting practices. The investigation stems from dealers in Florida and Illinois suing the company for falsifying sales numbers. In the same month, FCA admitted the sales streak that supposedly lasted for 75 months only lasted for 40 months. The company also changed how it reported sales numbers.
      Source: The Wall Street Journal

      View full article
  • Recent Status Updates

  • Who's Online (See full list)