BMW accused of overstating sales

BMW accused of overstating sales

December 25, 2019 0 By autotimesnews

The Securities and Exchange Commission is considering a charge against the Bavarian brand due to fraud according to car sales.

According to reports, BMW is under investigation in connection with dubious sales in the United States. According to the Wall Street Journal, which published an article citing “people familiar with the issue,” the Securities and Exchange Commission (SEC) contacted BMW and found out how legitimate the brand’s sales figures were.

If it is proved that BMW presented false record sales of cars that were not actually sold, but remained in the warehouses of dealerships, the brand would face a fine. A BMW spokesperson told the newspaper that the company plans to “fully” collaborate with the SEC investigation.

In 2016, foreign media cited a comment by BMW CEO North America Ludwig Willish, who told the National Association of Car Dealers at the event that there was “a lot of pressure” and very high sales figures. He overestimated the performance by registering cars as credit, and then selling them as used cars with very little mileage.

BMW is not the only automaker to have been criticized by government regulators for selling practices. According to WSJ, Fiat Chrysler Automobiles (FCA) paid $ 40 million in compensation for paying dealers for inaccurate sales information for several years.