Fiat Chrysler Under Sec, Fbi Investigation Over Sales Practices – Car Business On The Job
What are the Australian equivalents of the FBI and SEC? Arguably the ACCC is the Aussie version of the SEC, but what about the FBI?
Whatever it is, the unnamed investigation body needs to have a close look at the same practice in Australia as is being investigated in America. Fiat Chrysler and many other manufacturers are habitual when it comes to pushing dealers to claim cars as sold when they’re not. “Bob, we need you to push a few more through for us. We’ll give you $2000 a unit if you do”.
And then these same vehicles are marketed as showroom demo’s, dealers make nothing from them and the warranty clock started when they were reported as sold.
This bad practice has to stop!
Fiat Chrysler Automobiles (FCA) is facing a probe by both the FBI and Securities and Exchange Commission (SEC), looking into its sales reporting practices.
On July 11, FCA field staff were visited in their homes and offices, while FCA headquarters was also visited by federal staff attorneys. All FCA employees were told not to talk to investigators without a lawyer present. FCA operations in Orlando, Dallas and California were also visited on the same day as part of the probe.
FCA says that it will comply fully with the investigation, though exactly what is being looked into is still unknown. It seems to be linked to the case of the Napleton dealership group in Illinois that accused FCA of paying dealers to improperly inflate sales in a federal lawsuit earlier this year. At the time, FCA released a statement calling the allegations “baseless,” but the company also began adding a long disclaimer onto its sales reporting following the allegations.
Part of the disclaimer reads: “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.”
In the Napleton lawsuit, the dealer claims that FCA would pay dealers to report extra sales on the last day of the month then back out of the sales the following day before the factory warranty would kick in.
Both the FBI and SEC declined to comment on the story.
Every article I write is targeted at providing as much information for car owners and prospective car buyers.
Above anything else, Car Business is a company that provides automotive advice for car owners who don’t have access to experts. Am I an expert? I’ve been in the car business for over 38 years, and while there are areas where I’ll reach out to friends and acquaintances for advice, I’ve got a pretty good grasp of most aspects of the business. I’ve been called a lot of things in my time – Car Doctor, Car Professor or The Car Guy, but whenever someone wants some sensible advice, they call me.
I don’t charge for advice, whether it’s on the phone, via email or face to face. I’m happy to provide my expertise whenever I can. So if you want to chat to The Car Guru, get in touch.
I have access to good quality cars – you can see them on Cars Guide. Just click here [Cars Guide] to view our current stock of vehicles.
Other parts of my business that you may find the need to use from time to time are:
www.genuinespares.com.au. This is an online spare parts store for Chrysler, Jeep, Dodge, Alfa Romeo, Fiat, Volkswagen and Isuzu Ute. I’ve got thousands of mechanical and panel parts plus Mopar (Jeep, Chrysler, Dodge, Fiat, Alfa) T-Shirts, tyres, and alloy wheels as well. If you’re looking for a hard to get replacement part for any of these brands, or you just want to get a better price than retail on any car brand, let me know. And you won’t pay inflated replacement parts prices either. I’ve priced my stock at a discounted value to compete with the USA and Europe spare parts prices but with local delivery charges
We’re local agents for Williams Paint and Interior Protection as well as AutoGard and CleanGard car products and SunX window tinting. The Same story applies. This is an area that car dealers want to make an amazing amount of profit – up to 100% in some cases. Don’t get ripped off by the franchise car dealers – check us out for a local competitive price on car protection products, window tinting, and engine products.
I’m pleased to advise that in 2015 I was awarded the franchise for 1800Approved Finance. As a local finance company, we’re able to provide a better level of service than the local car dealers as well as pretty competitive rates. SO before you sign on the dotted line, let us compare rates on finance and insurance for you – no obligation. If you’re looking for finance for a new or used car, or any other worthwhile purpose, our company can assist – even if you’ve had some troubling financial issues.
BLOG – I write a new Blog for my website a couple of times a week. If you’d like to read some of the stories I’ve written just click here.
If you ever need that advice, reach out. My contact information is:
Phone: 0418 748 498
Visit: 226 Anzac Avenue Kippa-Ring Queensland (by appointment only)
Mail: PO Box 195 Clontarf Q 4019
Warm regards and remember to drive carefully
#carbusiness #thecarguy #bobaldons