Shares of American Italian group Fiat Chrysler Automobiles (FCA) fell on Thursday in Milan and Wall Street after the company was sued by inflating the number of cars sold in the United States.
The lawsuit filed by the company selling cars Napleton Automotive Group, accuses FCA to reward dealers who falsely report their sales figures, which directly affects the results of the company.
The action against the company casts shadows on their sales records for 2015 announced on January 5: 2.2 million vehicles (7% more than in 2014).
FCA, coming from 69 consecutive months of annualized sales growth in the US, said it will defend “vigorously”.
“The company believes that the lawsuit is without merit,” FCA said in a statement.
“The company has confidence in the integrity of its business and those of their vendors,” he added.
The news hit the markets. The group’s shares fell 7.94% in Milan and 4.20% in New York.
Alleged illicit payments
Napleton demand, filed in federal court in Illinois, accusing the company of fraud. He says unfair trade practices harmed FCA two of his agencies operating in Illinois and Florida.
Demand an official of FCA to provide $ 20,000 Napleton president, Ed Napleton exchange it reported falsely vehicle sales are accused.
Napleton refused payment but later learned that another employee of his company accepted the false report selling 16 cars.
The lawsuit states that another dealership selling cars Fiat Chrysler reported 85 false sales after “receiving tens of thousands of dollars in illicit reward for his complicity.”
False sales “create the appearance that the FCA performance is better than it really is,” the lawsuit said.
“These results are presented to the general public and the investment community. FCA has full reason to remain opaque on this issue because the truth would not help at a time may be looking for mergers or other business opportunities,” says the document .
The lawsuit claims that the behavior of FCA to sellers “was of coercion and threats of termination” of ties for reasons that have nothing to do with performance.
The president of Fiat Chrysler, Sergio Marchionne, said last year that promotes the consolidation of the automotive industry and urged General Motors to consider merging with your company.