Explaining that it wants to clarify its practices for reporting monthly sales, Fiat Chrysler Automobiles NV (NYSE: FCAU) said today that it will change the way it reports sales from now on and that it has applied its new method for reporting sales back to the beginning of 2011. The company said that annual sales volume under the new method is within about 0.7% of previously reported annual sales numbers.
One other effect of the change is that the company’s touted 71-month record of consecutive sales increases has now been calculated to have ended after 40 months. According to Fiat Chrysler the number of vehicles remaining in stock that had previously been reported as sold totaled about 4,500 vehicles out of total volume of 7.7 million cars.
Earlier this month Automotive News reported that FBI and U.S. Securities and Exchange Commission (SEC) investigators have visited U.S. employees of Fiat Chrysler Automobiles NV (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.” Bloomberg reported that the company is facing U.S. Justice Department fraud investigation that is looking carefully at whether the company has violated U.S. securities laws.
The recount also comes after a February lawsuit filed by two dealerships located in suburban Chicago that belong to the Napleton Automotive Group. In the lawsuit the two dealerships allege that dealers were paid to report phony sales on the last day of the month in order to hit sales targets. Fiat Chrysler was aware of the false reporting and “rewarded local sales managers for hitting sales targets” even though the company officials knew the reports were false.
Monthly sales reports, according to Fiat Chrysler, are “a mix of positive and negative numbers which do not exceed 0.5% of the reported data in any month.” The company’s press release provides details of the changes and the reasons for them. When Fiat Chrysler reports July sales it will use the new method.
Fiat Chrysler’s share traded up about 1.7% Tuesday afternoon at $6.99 in a 52-week range of $5.45 to $10.93.
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
