Fiat Chrysler pays $ 40 million for overpriced sales

Fiat Chrysler pays $ 40 million for overpriced sales

September 28, 2019 0 By autotimesnews

The Italian-American concern will pay $ 40 million for misleading investors about its monthly sales data.

A statement from the US Securities and Exchange Commission said that between 2012 and 2016, the American division of the FCA issued monthly press releases that falsely reported new car sales and falsely advertised a “streak” of continuous monthly sales growth over the past year, while in fact the growth actually ended in September 2013. In July 2016, the company revised its monthly US auto sales data for five years to reflect the new reporting method.

Two FCA dealers filed a federal lawsuit in connection with overestimated sales figures in January 2016. The case was settled earlier, but the terms of the deal with the dealers were not disclosed. Two other lawsuits were filed by investors who accused the company of securities fraud, and these cases were later closed. The concern spent $ 14.75 million to resolve this issue, Bloomberg reports.

 The FCA, in a statement released Friday after the SEC report, noted: “The American division of the FCA is fully cooperating in this matter. The company has reviewed and refined its policies and procedures and is committed to maintaining strict control over its sales reports. The calculation requires payment of $ 40 million, which will not have a significant impact on the financial statements of the company. ”

According to SEC representatives, dealers were paid to report fake sales in the company’s database using “co-marketing funds” to mask payments, adding that the database “contains false records of car sales, including false customer names and sales dates. “

The lawsuit stated that, as directed by the head of the US sales department, the company used the fleet and some other retail sales database “in order to distort the results of car sales and percentage growth compared to last year.”