Perrysburg Dodgeboy wrote:
mich800 wrote:
Right, fraud never hurts anyone but shareholders...:h
From innocent employees that lose their jobs to worst case scenarios like Enron.
Not that this is the case here but shareholders are not the only ones to feel the impact of things like this.
The shareholders won't get hurt as dealer sales have nothing to do with them. Factory sales to dealers not the end consumer are what they care about.
Don
Anyone who actually understands the business knows the "ONLY" thing that counts are retail and fleet deliveries. There is a limit to how many vehicles the dealer pipe-line will accept without sales. When that limit is met, either the manufacturer will need to increase incentives to move product or halt production. Either solution is expensive and ultimately profits are determined by the ability to sell into the retail market. Profits determine share price and is why people invest...not sales to the dealer body!
This is not the first time a manufacturer has been caught "padding" sales. Cadillac had almost an identical situation back in the early 2,000's and executives lost their jobs. These situations usually come from sales executives attempting to prove they are a hero and hoping to eventually "catch up". Those in the industry will tell you that most all manufacturers play games with sales figures at some point whether they are caught or not.
