Cars and Drivers
Fiat Chrysler Sales Reporting Target of FBI, SEC Investigations
Published:
Last Updated:
Details are scarce, but Automotive News reported early Monday afternoon that FBI and U.S. Securities and Exchange Commission (SEC) investigators have visited U.S. employees of Fiat Chrysler Automobiles N.V. (NYSE: FCAU) in their offices and homes during the month of July. Sources said that “raids or visits also were conducted in Orlando, Dallas, and California, … and included current and former FCA employees.”
Neither the FBI nor the SEC would comment on the report and Fiat Chrysler said it would have a statement later Monday.
Bloomberg reported that the company is facing U.S. Department of Justice fraud investigation that is looking carefully at whether the company has violated U.S. securities laws.
The investigation may be tied to a racketeering suit filed against Fiat Chrysler earlier this year by a Chicago-area auto dealer that charged the company with inflating monthly sales figures by paying dealers to report phony sales and then backing out the sales before warranty periods began running.
At the time Fiat Chrysler said that it was “confident in the integrity of its business processes and dealer arrangements and intends to defend this action vigorously.”
Automotive News points out that the automaker has included the following disclaimer on its monthly sales reports since April:
FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month.
Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system.
Does that clear things up? What this seems to indicate is that if there are any errors in the data, it’s either the fault of the “new vehicle delivery reporting system” or the devil.
The report has not had more than a temporary negative effect on Fiat Chrysler’s share price. The stock dropped to an intraday low of $6.55 and traded at $6.78 mid-afternoon on Monday. The stock’s 52-week range is $5.45 to $10.93.
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.