FCA, Feds and Dealership Lawsuit

[HookBill]

Fiat Chrysler under federal scrutiny after dealership lawsuit - Roadshow

 

[TexasEV]

Why is this an issue for the Dept. of Justice? Seems like it's a private legal matter between the manufacturer and it's dealers.

 

[wilheldp]

Why is this an issue for the Dept. of Justice? Seems like it's a private legal matter between the manufacturer and it's dealers.

The dealers are alleging that Chrysler-Fiat inflated sales numbers in an effort to look more profitable. Since it is a publicly traded company, any type of fraud like this falls under the jurisdiction of the SEC, DOJ, and FBI for various different reasons.

 

[HookBill]

Fiat Chrysler sources allegedly uncover inflated sales reporting - Roadshow

 

[GoTslaGo]

That would help explain why FCA showed a positive y-o-y growth earlier this year when everyone was down (except Tesla and a few others, sorry can't find the chart anymore). Detroit newspaper attributed it to their Jeep sales which made sense, but this brings it into question. We shall see.