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Fiat Chrysler Nailed in Sales Inflation Scheme

(Credit: Fiat Chrysler Automobiles )

Car Manufacturer News

Fiat Chrysler Nailed in Sales Inflation Scheme

Well this is awkward. Fiat Chrysler Automobiles was just fined $40 million by the U.S. Securities and Exchange Commission for misleading investors by inflating sales figures. There’s no word if this will put the Chevy Camaro or Silverado back in a better market position.

Actually, the SEC says the fraud happened from 2012 to 2016 when FCA put out press releases each month with the fabricated sales numbers. You probably don’t remember, but it was during that time FCA had a nice streak of monthly year-over-year sales growth some people thought was… odd. Turns out the automaker wasn’t really selling as many cars as it tried to tell everyone.

After Dieselgate, you’re justified in wondering what else automakers might be lying about. Several automakers like Ford and Hyundai have been nailed for inflating fuel economy estimates for various models. It really comes back to thinking critically instead of just believing everything you read, including on here, to be quite honest.

Allegedly, FCA recruited some dealers to participate so the fraud would go undetected. The dealers would falsify new car sales and keep a secret database of unreported sales, called the “cookie jar.” If FCA was in danger of breaking its long-running sales streak, it would dip into the cookie jar to make sure that didn’t happen.

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