DETROIT (AP) – Fiat Chrysler is denying allegations that it encourages dealers to falsely report sales to boost monthly totals that are released to the public and investors.
The accusations came in a federal lawsuit filed this week by Napleton’s Arlington Heights Motors, a Chicago-area dealership group. It alleges that FCA offers subsidies to dealers that meet sales targets. Napleton says that one competing dealer reported 85 false new-vehicle sales and got tens of thousands of dollars. It alleges the sales are removed from the books the following month.
Napleton says the false sales give the appearance that FCA’s performance is better than it actually is.
Fiat Chrysler says the claim is without merit and it will defend itself vigorously. The company says it’s confident in the integrity of its business dealings.