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William Maley

Chrysler News: FCA Admits Sales Streak Ended Three Years Ago, Makes Changes In How It Reports Sales

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Fiat Chrysler Automobiles is making some major changes in how they report sales and has admitted that their 75-month streak was only 40 months and it ended in September 2013.

 

The new sales reporting methodology announced by FCA in a statement will comprise of,

  • Sales reported by dealers
  • Fleet sales delivered directly by the company
  • Retail 'other' sales, including those by dealers in Puerto Rico
Using this new methodology, FCA went back and reviewed past monthly reports and found a 3 percent decrease in sales in September 2013 - a month that it had reported a 1 percent increase. Likewise, in August 2015, sales would have dropped 1 percent - not an increase of 2 percent.

 

FCA says its “annual sales volumes under the new methodology for each year in the 2011-16 period are within approximately 0.7 percent of the annual unit sales volumes previously reported.”

 

"Recent press reports have raised questions about the manner in which FCA US reports vehicle unit sales data on a monthly basis. These reports have mistakenly suggested that potential inaccuracies in the monthly data somehow impact the integrity of FCA's reported revenues in its financial statements," FCA said in a statement.

 

This implies that there isn't a connection between monthly retail sales reporting and revenue disclosures, something the company is being investigated for by the Department of Justice and Securities and Exchange Commission.

 

FCA went on to say that individual dealers were to blame for inflating sales and then 'unwinding' the transaction the following month. The company says there isn't any economic incentive for a dealer to do this as any incentives are reversed once the sale is unwound.

 

Source: Automotive News (Subscription Required), Fiat Chrysler Automobiles

 

Press Release is on Page 2






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Sergio and all the italian garbage needs to go especially the stealing and waste of billions on the Garbage brand Alfa. They need to kill off the Alfa, Fiat, and Lancia brands. Modernize and grow the rest of the name plates.

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I hope every accountant that knew about this, because I feel like they had to have, gets fired. Along with everybody else that knew about what was going on that either said nothing or was responsible for it. Essentially stealing from their investors by inflating numbers to make their company look better than it is..therefore increasing their stock price when it should not have. 

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On 7/27/2016 at 0:35 AM, dfelt said:

Sergio and all the italian garbage needs to go especially the stealing and waste of billions on the Garbage brand Alfa. They need to kill off the Alfa, Fiat, and Lancia brands. Modernize and grow the rest of the name plates.

Alfa is an Italian brand that is very god at giving Italians what they want and very poor at giving Americans what they want.  Keep Alfa in Italy, let the US division sell Ram and Jeep...along with the occasional retro muscle car.  Forget about trying to be all things to all people.

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