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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

Chrysler slows minivan production, hasn't built VW Routan this year

Chrysler has slowed production of its Town and Country and Dodge Grand Caravan minivans this week, Automotive News reports. The Windsor, Ontario plant will cut its three shifts from eight hours each to four hours each in an effort "to align production with market demand," a Chrysler spokesperson told AN. Chrysler also builds the closely related Routan minivan for Volkswagen at its Ontario facility, but has not built a single example thus far in 2013.
Sales of Chrysler's minivans fell 15 percent for the first two months of 2013, and a large part of that has to do with the 26-percent drop of the Grand Caravan alone (the T&C was only down by one percent). According to Automotive News data, as of March 1, Chrysler had an unsold inventory of 24,713 Town and Country models and 18,547 Grand Caravans - a 69- and 43-day supply, respectively.
"No sense running full speed now, then have a lot of vehicles sitting around a few months down the line," Chrysler spokeswoman Jodi Tinson told AN. Full production is expected to resume again on March 18.

Fiat-Chrysler CEO: Please Don't Buy The Fiat 500e

Fiat-Chrysler's CEO had a strange request for electric vehicle shoppers on Wednesday: don't buy the all-electric Fiat 500e. While CEO Sergio Marchionne was speaking at a conference in Washington, he told the crowd he's tired of Chrysler-Fiat losing money, The Detroit News reported. "I hope you don't buy it [the 500e] because every time I sell one it costs me $14,000," he said to the audience at the Brookings Institution. "I'm honest enough to tell you that." Marchionne said federal and state fuel efficiency mandates are forcing the automaker to build unprofitable cars, according to Reuters. A normal Fiat 500 starts at $16,195, and the 500e starts at $32,650, before federal and state tax credits. There are no sales data to indicate how the 500e is performing. Related Gallery The Best Hybrids For The Money View 12 Photos Green Chrysler Fiat Car Buying Electric fiat 500e