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The cooking of sales figures took place between 2012 and 2016 with the help of a database of unreported sales known internally as the “cookie jar,” according to a statement Friday from the Securities and Exchange Commission.
The automaker did not admit to or deny any wrongdoing as part of the settlement. But the SEC says Fiat Chrysler falsely claimed that it had a prolonged period of sales growth when the streak of sales gains it was bragging about each month was a myth.
“The SEC’s order finds that [Fiat Chrysler] inflated new vehicle sales results by paying dealers to report fake vehicle sales,” said the agency. It said that automaker also maintained a database of actual sales that it did not publicly report.
“In months when the growth streak would have ended or when [Fiat Chrysler] fell short of other targets, [Fiat Chrysler] dipped into the ‘cookie jar’ and reported old sales as if they had just occurred.”
The settlement order filed by the SEC said that Fiat Chrysler used 7,000 sales from the cookie jar in September 2013, near the beginning of the streak of improved monthly sales, and 12,000 sales in the May 2016 report, near the end of the streak.
Fiat Chrysler eventually claimed that improved year-over-year sales reached 75 months, or just over six years, by the summer of 2016. It boasted it was “not an inconsequential feat” and “a symbol of our continuing success in the marketplace,” according to the SEC order in the case.
The agency cited media reports in which the streak was described as “a stunning record,” “jaw-dropping,” and “incredible.”
The company had only a limited comment on the settlement, stating it “has reviewed and refined its policies and procedures and is committed to maintaining strong controls regarding its sales reporting.”
The lawsuit was settled earlier this year on terms that were not publicly disclosed.
— CNN Business’ Peter Valdes-Dapena contributed to this report
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