This is a follow up to this thread.FCA said an internal investigation found overstated sales numbers for last year. Looks like they found 5000 to 6000 more vehicles reported sold than they actually did. Here is the article from the Detroit Free Press. Could get interesting when Sergio reports 2nd quarter numbers to Wall Street Wed.

Interesting, I wonder how many of the 6000 were trucks?

Uh oh...Wonder if this could get expensive for FCA real quick.

What difference does it really make accept to share holders of the corporations? :h

3oaks wrote:What difference does it really make accept to share holders of the corporations? :hRight, fraud never hurts anyone but shareholders...:hFrom 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.

mich800 wrote:From innocent employees that lose their jobs to worst case scenarios like Enron.I often wonder what distant island W allowed Ken Lay to go live his life out on! His announced death was way to convenient.

FCA Investigation Finds Inflated Sales/update page 2

mich800
Explorer
Jul 26, 2016
I just wish they were more specific about the stories. It sounds like two different issues. This story seems to be about retail sales. One of the articles I read earlier, which I cannot find now, suggested FCA was fudging the dealer delivery numbers in return for advertising allowances. These vehicles not delivered to the dealers were then backed out after month end.
zb39
Explorer
Jul 26, 2016
JIMNLIN wrote:
Hmmmm........ read the article however how does all this help a member select a proper tow vehicle for his castle on wheels ???

This web needs a forum just for troll threads like this one....JMO !!

X2 Wow, a lot of you guys must be retired. Way to much time on your hands. Jump in the RV and go.
travelnutz
Explorer II
Jul 26, 2016
They don't have to be retired for this fraud to hurt them. Anyone with or building a retirement fund or virtually any other saving account sharing in national, mutual, or even local fund investments can and will be hurt by this fraud. If you don't realize this, you likely don't have any real investments for your future!

I certainly hope they thoroughly investigate at least for the last 10 years period of and for these activities as just one year (the most recent) is so easy to hide info or alter paperwork accountings to lessen the actual fraud numbers. No way did it just occur during just the last 1 year!
Travlingman
Explorer II
Jul 26, 2016
FCA said today their sales streak actually ended in 2013. They also said that since 2011 they under reported sales by 19,000 vehicles.:h Detroit Free Press
Perrysburg_Dodg
Explorer
Jul 26, 2016
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
Huntindog
Explorer
Jul 26, 2016
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

Wrong.

Investment managers use many sources of info to evaluate a stocks future potential. Youncan bet your socks that they are aware of Both sales to dealers, AND retail sales reports.
If those reports are untruthful, then they cannot make prudent investment decisions for their clients, IE: pension funds, mutual funds, etc.

So fake reports hurt a lot more people than just the shareholders.... And why should it be acceptable to lie to the shareholders anyways?
patriotgrunt
Explorer
Jul 26, 2016
Am I missing something here? How would FCA not identify this issue much earlier? If they knew their production numbers, then sales should match. However, if overall sales numbers were thousands over production, I would think that would trigger an audit. Unless somehow the left hand isn't speaking with the right.
mich800
Explorer
Jul 26, 2016
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

One, the dealer network health and trust will impact the OEM. Second, one story was reported that it was dealer deliveries that were in question. Don't let your alliance with FCA cloud your critical thinking. Trust me a positive outcome to this is a good thing. But I also will not shut off my training just because I like this company.

And to add to the comment "dealer sales have nothing to do with them". If the dealers are not selling the quantity they claim they are, who is FCA going to sell to?
Bird_Freak
Explorer II
Jul 26, 2016
I can see them padding sales numbers to look better to possible buyers of the company.
SoCalDesertRid1
Explorer
Jul 27, 2016
Looks like Fiat has been cooking the books.