FCA Being Investigated for U.S. Sales Reporting

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Fiat Chrysler Automobiles is at the center of an investigation led y the FBI and U.S. Securities and Exchange Commission (SEC) regarding the automaker’s U.S. sales reporting practices. The agencies visited the offices and homes of certain FCA field staff earlier this month, Automotive News reports.

The probe is said to still be in its early stages, two unnamed sources close to the issue told Bloomberg. The sources, who declined to elaborate on what was being investigated, asked to remain anonymous because the issue is said to be confidential. In addition to the automakers Auburn Hills headquarters, federal staff attorneys visited locations in Orlando, Dallas, and California linked to current and former employees.

FCA issued the following statement to Motor Trend via email:

“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. 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.”

Earlier this year, dealerships in Illinois and Florida filed a lawsuit alleging the automaker padded vehicle sales by paying dealers to created false New Vehicle Delivery Reports. In 2015, a Maserati dealer filed a similar lawsuit, according to Bloomberg.

Only time will tell what findings the probes into FCA’s U.S. sales reporting practices will yield.

Source: Automotive News (Subscription required), Bloomberg