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| U.S. Investigates Whether Fiat Chrysler Inflated Sales Figures | |
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| Fiat Chrysler Automobiles is being investigated by the Securities and Exchange Commission, which is asking whether the automaker has improperly inflated its monthly vehicle sales totals. | Fiat Chrysler Automobiles is being investigated by the Securities and Exchange Commission, which is asking whether the automaker has improperly inflated its monthly vehicle sales totals. |
| In a statement on Monday, the company said it was cooperating with the inquiry. The company said that the Justice Department also had recently raised questions about its sales reports. News of the Justice Department inquiries were first reported by Bloomberg. | In a statement on Monday, the company said it was cooperating with the inquiry. The company said that the Justice Department also had recently raised questions about its sales reports. News of the Justice Department inquiries were first reported by Bloomberg. |
| Fiat Chrysler sales reports came under scrutiny in January when two Chrysler dealerships filed a lawsuit alleging that the company pressured them to inflate monthly sales totals. | Fiat Chrysler sales reports came under scrutiny in January when two Chrysler dealerships filed a lawsuit alleging that the company pressured them to inflate monthly sales totals. |
| The S.E.C.’s involvement signals that the government is trying to determine whether Fiat Chrysler is misleading investors with its sales reports. | The S.E.C.’s involvement signals that the government is trying to determine whether Fiat Chrysler is misleading investors with its sales reports. |
| In the statement released on Monday, Fiat Chrysler offered no details on how it counts the number of cars sold each month. But it noted that it books revenue — a key figure that must be included in quarterly S.E.C. filings — when it ships vehicles to its dealers, not when they are purchased by consumers. Such accounting is standard practice in the auto industry. | In the statement released on Monday, Fiat Chrysler offered no details on how it counts the number of cars sold each month. But it noted that it books revenue — a key figure that must be included in quarterly S.E.C. filings — when it ships vehicles to its dealers, not when they are purchased by consumers. Such accounting is standard practice in the auto industry. |
| Dealers for various other car companies have complained less formally about the automakers’ pressing them to buy vehicles as a way to stoke sales data. | Dealers for various other car companies have complained less formally about the automakers’ pressing them to buy vehicles as a way to stoke sales data. |
| BMW, Nissan Motor and Kia Motors, among others, regularly pay dealers to buy cars and keep them as demonstration models or lend them to customers whose vehicles are being serviced. Those companies are not known to be under investigation, but the industry practice raises questions about whether new-car sales are as robust as they appear, and whether investors are being given an overly rosy picture of auto companies’ operations. | BMW, Nissan Motor and Kia Motors, among others, regularly pay dealers to buy cars and keep them as demonstration models or lend them to customers whose vehicles are being serviced. Those companies are not known to be under investigation, but the industry practice raises questions about whether new-car sales are as robust as they appear, and whether investors are being given an overly rosy picture of auto companies’ operations. |
| The Fiat Chrysler dealer’s suit, filed in the United States District Court for the Northern District of Illinois, also alleged that Chrysler had paid other dealers to report vehicles as sold in a particular month, and then revise the sales reports a short time later. | The Fiat Chrysler dealer’s suit, filed in the United States District Court for the Northern District of Illinois, also alleged that Chrysler had paid other dealers to report vehicles as sold in a particular month, and then revise the sales reports a short time later. |
| It was filed by two Chrysler dealerships, one in Illinois and another in Florida, that are owned by the Napleton Automotive Group. | It was filed by two Chrysler dealerships, one in Illinois and another in Florida, that are owned by the Napleton Automotive Group. |
| In January, Fiat Chrysler said the dealers’ lawsuit was “baseless.” | In January, Fiat Chrysler said the dealers’ lawsuit was “baseless.” |