46222
Fiat Chrysler Caught Inflating US Sales
Economy, Auto

Fiat Chrysler Caught Inflating US Sales

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, US 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 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.”
They said the sales numbers were inflated in part under pressure to preserve FCA’s streak of US monthly year-over-year sales increases, which now stands at 75 months.
One source cited dealer complaints about the practice that reached CEO Sergio Marchionne before Bigland sought to end it. But he added that the overstating of sales has crept back into play this year, as competitive pressures on FCA’s field staff have increased.
The other company insider said the employee turnover rate among sales staff in the company’s nine business centers around the country is four times higher than in the rest of the company because of pressure applied from above to meet aggressive sales targets.
FCA has declined to comment.
The revelations come as investigators from the Securities and Exchange Commission and the Department of Justice look into FCA’s sales practices. One of the company sources said investigators visited all nine regional business centers beginning July 11 and spoke with current and former employees.
Investigators also visited FCA field employees and past employees at their homes, the source said.

 

Short URL : http://goo.gl/e5IBS7
  1. http://goo.gl/QErj0c
  • http://goo.gl/hvqE6A
  • http://goo.gl/BcCrVr
  • http://goo.gl/Plc042
  • http://goo.gl/Cgb4RR

You can also read ...

Apparel tops the list of goods smuggled into Iran.
The Ministry of Industries, Mining and Trade has introduced...
Oberbank Deal to Trigger European Finance Flow
The chief executive of Oberbank–whose bank this week became...
SCI Puts Inflation at 8%
The goods and services Consumer Price Index in the 12-month...
Proton Dissolves Dormant Subsidiary in Iran
Malaysian industrial group DRB-Hicom Berhad, the owner of...
VW Seeking Long-Term Cobalt Supplies in Shift to Electric Cars
Germany’s Volkswagen is moving to secure long-term supplies of...
Unwanted Mehr Housing Units to Be Repurposed
With the aim of bringing to a close the protracted and...
The deal was signed on September 12 at a Daimler factory in Wörth am Rhein, in Germany’s western state of Rhineland-Palatinate.
Data released by Iran Khodro Diesel, a subsidiary of IKCO,...
Volvo XC40 Goes Small and Upscale
The 2019 Volvo XC40 combines an eye-catching exterior, a fresh...

Trending

Googleplus