Fiat Under Investigation Over Possible Fraudulent Sales Figures

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Italian American carmaker Fiat Chrysler Automobiles (FCA), the seventh largest automaker in the world is facing an investigation from the U.S. Justice Department (DOJ) and Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI) over possible fraudulent sales figures.

The investigation comes after a dealer from the US state of Illinois sued the company in January who claimed the company manipulated monthly sales figures and rewarded dealers who falsified reports.

FCA have confirmed that they are under investigation in a statement saying, "In response to press reports today, FCA confirms that it is cooperating with an SEC investigation into the reporting of vehicle unit sales to end customers in the U.S.," the automaker said in its statement. 

FCA also tried to explain the reason for the differing figures in its statement,"In its annual and quarterly financial statements, FCA records revenues based on shipments to dealers and customers and not on reported vehicle unit sales to end customers. Inquiries into similar issues were recently made by the U.S. Department of Justice. FCA will cooperate fully with these investigations."

Automotive News reports a source stated that FBI and SEC agents visited the homes and offices of Fiat Chrysler regional managers on July 11. Raids or visits also were conducted on current and former FCA officials in other parts of the country.

Fiat Chrysler has been on a record 75-month long streak of positive sales growth since Chrysler came out of bankruptcy with the aid of Fiat and the US government.

Read more on: #fiat #auto news
Story first published: Tuesday, July 19, 2016, 18:00 [IST]
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