FCA under investigation

[Travlingman]

Looks like the U.S. Security and Exchange commission along with the Justice Department is looking into how FCA reports their sales numbers. Looks like a dealer is saying they are being told to fudge their numbers.
FCA confirms investigation
FCA investigation

[SoCalDesertRid1]

The most that will happen is some corporate executive is fired and leaves the company with his million dollar severance package intact. Big whoopie. :r

[mich800]

boshog wrote:

JALLEN4 wrote:

boshog wrote:
Actually, a rogue dealer or two with a grudge is making the claim. FCA is fully cooperating with the investigation.

In the automotive world, a manufacturer reports what the assembly plant made. Once a vehicle rolls off the line, it is considered sold to a dealer, none of them track retail sales.

They better cross their fingers and hope nobody was playing a numbers game since they are a public company looking to merge.

Every manufacturer selling in the U.S. tracks and reports retail sales. These numbers are released monthly to the press, detailing classification and location of sales. Dealers are responsible to sales within their market area of responsibility and ultimately millions of dollars can be at stake. Dealers are responsible to report every sale to the manufacturer with detail so as to allow the manufacturer to track warranty, recalls, dealer performance, and a myriad of other purposes. You need to re-check your information.

OK. Rechecking..... Done! Nothing has changed, the assembly plant is the profit center, when a vehicle rolls off it is considered sold and this is how the accounting books work. You can argue until the cows come home but their accounting methods of how vehicle accounting works will remain the same. By the way, I live in Detroit and work in automotive, this is common knowledge here.

It is actually shipped to dealer. Which is the crux of the investigation. There is no industry where gaap accounting would allow revenue recognition just because you made something.

[SoCalDesertRid1]

It's time for a beer everywhere 🙂

[dodge_guy]

It's 9:25 somewhere! :E

[spoon059]

NJRVer wrote:
At 9:25AM?!! lol

Hey... no judgement here...

[NJRVer]

boshog wrote:

JALLEN4 wrote:

boshog wrote:

JALLEN4 wrote:

boshog wrote:
Actually, a rogue dealer or two with a grudge is making the claim. FCA is fully cooperating with the investigation.

In the automotive world, a manufacturer reports what the assembly plant made. Once a vehicle rolls off the line, it is considered sold to a dealer, none of them track retail sales.

They better cross their fingers and hope nobody was playing a numbers game since they are a public company looking to merge.

Every manufacturer selling in the U.S. tracks and reports retail sales. These numbers are released monthly to the press, detailing classification and location of sales. Dealers are responsible to sales within their market area of responsibility and ultimately millions of dollars can be at stake. Dealers are responsible to report every sale to the manufacturer with detail so as to allow the manufacturer to track warranty, recalls, dealer performance, and a myriad of other purposes. You need to re-check your information.

OK. Rechecking..... Done! Nothing has changed, the assembly plant is the profit center, when a vehicle rolls off it is considered sold and this is how the accounting books work. You can argue until the cows come home but their accounting methods of how vehicle accounting works will remain the same. By the way, I live in Detroit and work in automotive, this is common knowledge here.

You originally stated "none of them track retail sales". Not a true and accurate statement. This was what I responded to. There was no mention of accounting practices in your original post. As the guy who authorized the check for tens of thousands of cars before they were shipped, I am well aware they are "sold" when they leave the factory.

While I never lived in Detroit, I owned and managed multiple dealerships for more than four decades. It is well understood in the "business" that auto executives live and die based on retail numbers reported monthly whether they are in sales, production, or any other discipline. If dealers don't sell them, the manufacturer's sales will soon stop and production soon follows. You learn that in accounting 101!

Fight with yourself, I'm going to get a beer and watch retro-TV.

At 9:25AM?!! lol

[boshog]

JALLEN4 wrote:

boshog wrote:

JALLEN4 wrote:

boshog wrote:
Actually, a rogue dealer or two with a grudge is making the claim. FCA is fully cooperating with the investigation.

In the automotive world, a manufacturer reports what the assembly plant made. Once a vehicle rolls off the line, it is considered sold to a dealer, none of them track retail sales.

They better cross their fingers and hope nobody was playing a numbers game since they are a public company looking to merge.

Every manufacturer selling in the U.S. tracks and reports retail sales. These numbers are released monthly to the press, detailing classification and location of sales. Dealers are responsible to sales within their market area of responsibility and ultimately millions of dollars can be at stake. Dealers are responsible to report every sale to the manufacturer with detail so as to allow the manufacturer to track warranty, recalls, dealer performance, and a myriad of other purposes. You need to re-check your information.

OK. Rechecking..... Done! Nothing has changed, the assembly plant is the profit center, when a vehicle rolls off it is considered sold and this is how the accounting books work. You can argue until the cows come home but their accounting methods of how vehicle accounting works will remain the same. By the way, I live in Detroit and work in automotive, this is common knowledge here.

You originally stated "none of them track retail sales". Not a true and accurate statement. This was what I responded to. There was no mention of accounting practices in your original post. As the guy who authorized the check for tens of thousands of cars before they were shipped, I am well aware they are "sold" when they leave the factory.

While I never lived in Detroit, I owned and managed multiple dealerships for more than four decades. It is well understood in the "business" that auto executives live and die based on retail numbers reported monthly whether they are in sales, production, or any other discipline. If dealers don't sell them, the manufacturer's sales will soon stop and production soon follows. You learn that in accounting 101!

Fight with yourself, I'm going to get a beer and watch retro-TV.

[fla-gypsy]

Perrysburg Dodgeboy wrote:
So we have one poster with a ram in his sig and the FCA truck guys circling the wagons fast? You funny. I talked with the owner of the dealership I go to and he said that it's just a dealer disgruntled about something FCA did.

As for the DOJ finding any facts LOL they couldn't find their ASS with both hands and a road map!

Don

The Feds can be quite thorough if they see money or power in it for them. As in the previously aforementioned action it would have only led to butt hurt similar to that expressed by fanboys.

[JALLEN4]

boshog wrote:

JALLEN4 wrote:

boshog wrote:
Actually, a rogue dealer or two with a grudge is making the claim. FCA is fully cooperating with the investigation.

In the automotive world, a manufacturer reports what the assembly plant made. Once a vehicle rolls off the line, it is considered sold to a dealer, none of them track retail sales.

They better cross their fingers and hope nobody was playing a numbers game since they are a public company looking to merge.

Every manufacturer selling in the U.S. tracks and reports retail sales. These numbers are released monthly to the press, detailing classification and location of sales. Dealers are responsible to sales within their market area of responsibility and ultimately millions of dollars can be at stake. Dealers are responsible to report every sale to the manufacturer with detail so as to allow the manufacturer to track warranty, recalls, dealer performance, and a myriad of other purposes. You need to re-check your information.

OK. Rechecking..... Done! Nothing has changed, the assembly plant is the profit center, when a vehicle rolls off it is considered sold and this is how the accounting books work. You can argue until the cows come home but their accounting methods of how vehicle accounting works will remain the same. By the way, I live in Detroit and work in automotive, this is common knowledge here.

You originally stated "none of them track retail sales". Not a true and accurate statement. This was what I responded to. There was no mention of accounting practices in your original post. As the guy who authorized the check for tens of thousands of cars before they were shipped, I am well aware they are "sold" when they leave the factory.

While I never lived in Detroit, I owned and managed multiple dealerships for more than four decades. It is well understood in the "business" that auto executives live and die based on retail numbers reported monthly whether they are in sales, production, or any other discipline. If dealers don't sell them, the manufacturer's sales will soon stop and production soon follows. You learn that in accounting 101!

[boshog]

JALLEN4 wrote:

boshog wrote:
Actually, a rogue dealer or two with a grudge is making the claim. FCA is fully cooperating with the investigation.

In the automotive world, a manufacturer reports what the assembly plant made. Once a vehicle rolls off the line, it is considered sold to a dealer, none of them track retail sales.

They better cross their fingers and hope nobody was playing a numbers game since they are a public company looking to merge.

Every manufacturer selling in the U.S. tracks and reports retail sales. These numbers are released monthly to the press, detailing classification and location of sales. Dealers are responsible to sales within their market area of responsibility and ultimately millions of dollars can be at stake. Dealers are responsible to report every sale to the manufacturer with detail so as to allow the manufacturer to track warranty, recalls, dealer performance, and a myriad of other purposes. You need to re-check your information.

OK. Rechecking..... Done! Nothing has changed, the assembly plant is the profit center, when a vehicle rolls off it is considered sold and this is how the accounting books work. You can argue until the cows come home but their accounting methods of how vehicle accounting works will remain the same. By the way, I live in Detroit and work in automotive, this is common knowledge here.

[Perrysburg_Dodg]

As far as a dealer over charging you, did you get a quote on that $184 oil change and $136 fuel filter :E ? Not sure how a fuel filter on a 5.9 could cost that much, my 04 it took about 15 minutes to change out the factory filter. They didn't over charge you for the labor @ 0.5 hours but the factory filter for a 5.9 should be around $38 last time I bought one. But that was about six years ago.

Don

[Perrysburg_Dodg]

mich800 wrote:

And why would someone take the words of an uninvolved party and assume they are privy to any facts of the case? Here are some scenarios about this dealer that seems to know all the facts:

1. They took the bribe and have a vested interest in this going away.
2. They didn't take the bribe but need FCA to survive so have a vested interest.
3. They think they are smarter than everyone else so qualified to speak on something without facts.
4. If they actually have facts or are involved it is a very poor decision to be discussing a case that may very well involve them.
5. They are just guessing but want to be part of the action.

Dude where in this statement did I say what he said are the FACTS? " I talked with the owner of the dealership I go to and he said that it's just a dealer disgruntled about something FCA did."

This is his opinion and being a long time dealer they all know each other and go to the dealer meetings! As a small time dealer I'm 100% sure it is #2 in your list, just like most other dealers.

Funny JALLEN4 posted this about the dealer, "Napleton likes to keep his lawyers busy. He's also suing Volkswagen over the diesel scandal and sued Jaguar Land Rover over right of first refusal. At least the legal community will profit! " then this "Nope. If FCA did something wrong, they should be held accountable. But like a divorce, there's his side, her side, and the truth. We'll just have to wait and see what comes out of it."

I agree 100% with his last statement and if FCA is cooking the books then whoever is involved needs to be fired. But since nothing ever happens to the big boys and girls at the top (think GM and ignition switch here) it is all a big joke.

Don

[spoon059]

FishOnOne wrote:
My comment was directed to you and not fca.

sigh... have a good night Troy...

[dodge_guy]

spoon059 wrote:

FishOnOne wrote:
Yet you care enough to reply to this thread.

Oh... look who shows up inexplicably in a Ram thread... I'm stunned. To answer your trolling, I don't care about the investigation. That does not mean that I do not care about the topic of the thread. What does your cousin's sisters, uncles brother-in-laws, nephew think about this twist in FCA?

To be fair he did wait till the 3rd page! I thought maybe he was helping with the investigation?!!!