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Feds investigating FCA sales fraud focusing on strange code word

The US government is currently investigating Fiat Chrysler Automobiles (FCA) over the possibility of sales fraud, and according to The Wall Street Journal, the investigation has revealed a strange phrase about a nonexistent "unnatural acts department." People knowledgeable about the term told The Wall Street Journal that this phrase was a "rallying cry." Basically, if it looked like the company, region, or dealer wasn't going to hit sales targets, this was a sign that some outside-the-box sales solutions were needed. People told the news outlet those solutions could include selling cars at a loss or having the dealer buy a fleet of customer test-drive cars. However, this could also be evidence of some less savory ways to boost sales. In addition to the investigation, the company is already facing at least one lawsuit from a dealer group that alleges it would bribe dealers to pad monthly sales figures. FCA had an incentive to maintain sales numbers as well, considering that it was claiming a long streak of increasing sales. Under scrutiny recently, the company changed its sales reporting practices and numbers for previous years. Under the old reporting methods, it was possible for dealers to sell cars, report the sales, and then cancel or "unwind" the sales later. This wouldn't count as a lost sale, but the car also couldn't be recorded as another sale later. As a result, an unscrupulous dealer could have hypothetically used it to "sell" a car one month and "unwind" it the next. If FCA knew about this, it's also possible the company could have pushed dealers to use the system for false sales, something the Feds theorize may be related to the "unnatural acts department" phrase. It's still entirely possible this "unnatural acts department" was just a corporate term for thinking of creative ways to meet sales goals. And selling cars at a loss is definitely unnatural for businesses that are trying to make money. Whatever the phrase truly meant to dealers, it certainly is bizarre. Related Video: News Source: The Wall Street JournalImage Credit: GIUSEPPE CACACE/AFP/Getty Images Government/Legal Chrysler Fiat FCA fiat chrysler automobiles fca us investigation

Appeals court delays 'sensible resolution' meeting between GM, Fiat Chrysler CEOs

DETROIT — Three federal appeals judges have delayed a court-ordered meeting between the CEOs of General Motors and Fiat Chrysler to try to settle a lawsuit over corruption by union leaders. U.S. District Court Judge Paul Borman last week ordered GM CEO Mary Barra and FCA CEO Mike Manley to meet before July 1. But GM on Friday asked the federal appeals court in Cincinnati to overturn the order and remove Borman from the case. In an order issued Monday, three appellate judges delayed Borman's order to provide time to consider legal points raised by GM. GM is suing crosstown rival FCA alleging that it got an advantage by paying off United Auto Workers union leaders to reduce labor costs during contract talks. FCAÂ’s former labor chief, Al Iacobelli, is in prison, although the company denies that it directed any prohibited payments. In his order last week, Borman described the lawsuit as a “nuclear option” that would be a “waste of time and resources” for years if he allows the case to move forward. The judge ordered Barra and Manley to sit down without lawyers by July 1 and reach a “sensible resolution of this huge legal distraction.” Borman wants an update from them on a public video conference that same day. Over the weekend he modified the order to allow lawyers to attend the meeting. In a court filing, GM called BormanÂ’s order a “profound abuse” of power. “The court possesses no authority to order the CEOs of GM and FCA to engage in settlement discussions, reach a resolution and then appear alone at a pretrial conference eight days later, without counsel,” GMÂ’s attorneys said. “Second, the court has no business labeling a properly filed federal lawsuit assigned to the court for impartial adjudication ‘a distractionÂ’ or a ‘nuclear option,’” GM said. Borman canÂ’t be viewed as impartial, company lawyers said. The judge declined to comment. In a court filing Monday, Fiat Chrysler lawyers wrote that GM didn't make a good case to remove Borman because judges routinely direct lawsuit parties to talk about settling. The lawyers wrote that GM originally wanted the case assigned to Borman but now apparently is worried that his tough questions mean he will dismiss GM's claims. “GM should not be permitted now to complain that that judge has turned out to be less hospitable to GMÂ’s claims than GM anticipated. Parties are not permitted to engage in such judge shopping," the filing said.

Chrysler 300C John Varvatos Limited Edition returns for 2014 with AWD option

Before last year, many of us car guys had no idea who John Varvatos was. That all changed when the Detroit-native fashion designer lent his talents to the Chrysler 300 to create the snazzy, special-edition 300C John Varvatos models. The fashionable sedan returns for 2014 with two versions (Luxury and Limited), and the only big news here is that the latter model will be getting an optional all-wheel-drive system.
Distinguishing the Luxury and Limited models, the Luxury comes with Platinum exterior accents and is offered in a handful of colors while the Limited gets darker Titanium accents and only comes with a Phantom Black Tri-Coat paint job. Both cars get an exclusive interior design with special leathers, patterns and colors worthy of the designer's name and logo. The JV Edition is the only 300C to offer a V6 engine, but V8 lovers can still opt up for the powerful Hemi engine.
It would appear that the Luxury Edition is already on sale, but you'll have to wait until March for the 2014 JV Limited Edition, which, according to a Chrysler spokesperson, will be "limited from a production timing standpoint." The JV Luxury Edition starts at $41,195 and the Limited Edition will have a starting price of $44,480 (*not including $995 for destination) - both cars can be optioned with all-wheel drive for $2,500. Scroll down for the press release on the 300C John Varvatos Limited Edition.