Fiat Chrysler Being Sued for Racketeering

[ryan.gerardi]

News broke yesterday that the Napleton Automotive Group has filed a lawsuit in a federal court in Illinois alleging that Fiat Chrysler Automobiles violated federal racketeering laws in an attempt to falsify monthly sales numbers.

FCA says dealer's allegations are baseless.

Will this push VW off the headlines?

 

[Sunny]

It was an interesting read in my news feed, but unless there's concrete evidence to support the allegations against FCA, I don't see this going anywhere.

 

[Jeff Kershner]

It's called "punching sales". I don't know of one manufacture that doesn't throw some hard incentives around the end of the year to get dealers to "punch sales". Napelton auto group is claiming that FCA' business center went beyond "incentivizing" and was more down the line of bribing.

In the end, could be a tough one to prove out.

The lawsuit makes allegations of false sales reporting by FCA US. Notwithstanding numerous requests to provide evidence of this alleged activity, the plaintiffs have refused to substantiate their claims. FCA US carried out an investigation of the facts, and has determined that these allegations are baseless and plaintiffs were notified of this fact before they filed suit.