Internal FCA Audit Determines That Sales Figures Were Inflated By Dealers

Internal FCA Audit Determines That Sales Figures Were Inflated By Dealers
An internal review ordered in mid-2015 by top Fiat Chrysler executives uncovered thousands of vehicle sales reported by FCA brands for which there were no actual buyers, according to two company sources.

The insiders told Automotive News that following the inquiry, U.S. sales head Reid Bigland put a stop to the practice, which had resulted in FCA US reporting more sales than it actually made.

The sources did not specify the precise time period covered by the review but said it revealed that 5,000 to 6,000 vehicles had been reported as sold by dealers and then "unwound."


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MDarringerMDarringer - 7/25/2016 10:04:00 AM
+1 Boost
Yeah, let's blame the dealers as the sole cause of this. This is like how VW blamed a handful of rogue engineers for dieselgate.

FCA highly encouraged "internal sales" of "courtesy cars" and for those cars to be reported as sold and then resold to consumers with money on the hood from FCA.

I know of one Maserati dealer that "bought" courtesy cars from itself to report sales but those sold cars were still represented as new to customers which is illegal. The dealer was so egregious that even FCA was looking for investors to buy out the franchise.

The bit about sales staff turning over at FCA dealerships is very true locally as well. Reputable dealerships tend to have very little sales staff turn over because as a dealer you want the sales people to connect with customers and be their contact.

Although FCA is not alone in creative sales reporting, they bend the rules a lot. When the 200 was introduced, they acted like there was a stampede of people going to dealers and placing orders. Nope. They were pushing thousands of units out to dealers and calling them dealer orders.

If there is an order, there must be a sale, right??? Report it, young man!!

Dealers don't necessarily order all the cars on their dealer order list. Manufacturers call "orders" the cars they push out to dealers.

Smart dealers gather data on what is selling and reconfigure their "orders" to order what is actually selling in their region.

I wonder how long it will be before Dodge/Chrysler/Jeep/Ram is sold to Hyundai/Kia or GAC.


MDarringerMDarringer - 7/26/2016 2:00:27 PM
0 Boost
Uh oh! According to Left Lane, FCA's winning streak ended 3 years ago: http://www.leftlanenews.com/fca-downplays-sales-reporting-controversy-92391.html


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