U.S. securities regulators say Fiat Chrysler misled investors by overstating its monthly sales numbers from 2012 to 2016.
Fiat Chrysler is paying $40 million to settle with U.S. securities regulators who say the automaker misled investors by overstating its monthly sales numbers over a five-year period.
“This case underscores the need for companies to truthfully disclose their key performance indicators,” Antonia Chion, associate director of the SEC’s Enforcement Division, said in the statement. She noted that the new vehicle sales figures give investors insight into the demand for an automaker’s products, a key to assessing the company’s performance.Fiat Chrysler said it has reviewed and refined its sales reporting procedures.
The SEC said employees called this database of actual but unreported sales the “cookie jar.” The company dipped into those sales to stop the streak from ending, or when it would have missed other sales targets.Fiat Chrysler said it now records sales as soon as vehicles are shipped to customers. It has also taken steps to ensure that a sale is immediately subtracted from its books when it finds out the deal was scuttled because the buyer backed out or couldn’t get financing.
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