US dealers accuse FCA of supply fraud

US dealers accuse FCA of supply fraud

November 15, 2019 0 By autotimesnews

The concern practically “scored” all the warehouses of official dealers with cars for which there were no orders. The factories shipped about 40,000 “excess” cars, which allowed the company to maintain positive production dynamics against the backdrop of a falling market.

A number of anonymous representatives of the American dealers of the FCA concern and its brands “complained” about the operation of the parent company. According to them, the company began to ship a huge number of cars throughout the dealer network, for which there were no pre-orders from customers or dealers. The concern forced its partners to take extra cars.

This has led to significant costs for dealers. Not only did distributors have to look for opportunities to increase sales (on unfavorable conditions for themselves), they also suffered unplanned losses on payment and protection of warehouse parking for new cars. According to preliminary information, the FCA shipped about 40,000 “extra” cars. In turn, this made it possible to increase production and supply indicators of the company’s products.

 However, Fiat Chrysler’s communications director Neil Golightly said the company has begun using a new demand forecasting system. It allows you to “predict” future orders of dealers, and prematurely provide them with the necessary quantity of goods. Moreover, at the end of the third quarter of this year, only 1,000 vehicles were left at the dealerships, which were not secured by orders.

Independent experts from Edmunds also found that dealers are right, and FCA vehicles are in stock almost twice as long as competitors’ cars. The average is 75 days, for Fiat and Alfa Romeo cars from 94 to 187 days.