Fed Opens Probe Over Fiat/Chrysler's Inflated Sales Reporting Practices

Some of Fiat Chrysler’s U.S. dealers have begun receiving subpoenas to provide documents and or testimony to a federal grand jury in Detroit as part of a probe into the company’s sales reporting practices, Automotive News has learned.

It is unclear how many of FCA’s approximately 2,650 U.S. dealerships have received subpoenas. Federal grand jury proceedings are secret under U.S. law.

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nguyenvuminh - 7/27/2016 9:15:12 AM

0 Boost

Don't know where the gov't gets their information but I think they're wrong. FCA is selling millions of Hellcats out there so the growth rate they've been quoting has got to be true. Personally, I see at least 2 Hellcats over the last 3 weeks, well, I think they're Hellcats anyway because they were so fast they were kind of blurry.

TomM - 7/27/2016 5:36:57 PM

+1 Boost

Sorry - but the problem is not with the fact that there are a few Hellcats out there (No one sells millions of one model anymore - and this is bsically a low volume car) - but the real problem is that OBVIOUSLY FCA was having problems selling the Dart and the 200 - they had a real delay in bringing the Pacifica to the market which reduced mini-van sales for a while too. SO - they used counting practices that did not reveal how many cars were being "bought" by dealers for loaner car duty - and they may have inflated those figures too.

While it may seem small- this type of sales reporting manipulates the stock market - making FCA look better than its real results - and that also affects the cost of borrowing for FCA as well. While likely all of the brands were/are doing something questionable - it is how far they actually go to appear better than they are that causes problems.

The fact is - real car sales topped out a year ago or more - and since then most have reported ups and downs - and far fewer big increases than during the boom just before. Chrysler is already heavily discounting the Pacifica - something you would not expect from a car just introduced. And while the packaging of the 200 is a problem along with its weight - dealers are just about giving the things away right now (end of model year). All the signs were on the table that FCA was not selling at the ever increasing records they claimed - but people continued to ignore it.

MDarringer - 7/27/2016 6:41:07 PM

+1 Boost

@TomM Silly Tommy...did you not see his absurdity and sarcasm? You may want to look into assisted living before the dementia progresses too far.

Terry989 - 7/27/2016 7:31:44 PM

0 Boost

Mattie, Mattie, Mattie - - - Once again your statements prove you know little to nothing about the car industry. Even with the cognitive and social skills of a 5-year old, I would have expected more from you.
#Mattie_Autospies_Pet

MDarringer - 7/27/2016 9:46:11 AM

+2 Boost

The creative reporting of sales in the auto industry is systemic.

MDarringer - 7/27/2016 7:18:53 PM

+2 Boost

I've seen the shenanigans firsthand.