Fiat Chrysler has confirmed that the Securities and Exchange Commission is looking into the way it reports sales in its quarterly reports. FCA’s statement reads as follows:
“In response to press reports today, FCA confirms that it is cooperating with an SEC investigation into the reporting of vehicle unit sales to end customers in the U.S. In its annual and quarterly financial statements, FCA records revenues based on shipments to dealers and customers and not on reported vehicle unit sales to end customers. Inquiries into similar issues were recently made by the U.S. Department of Justice. FCA will cooperate fully with these investigations.”
The matter was first reported by Bloomberg News but exactly what sales are being examined is not clear.
Three agencies, including the EPA, say automakers may not be able to meet the strict fleet wide fuel economy standard of 54.5 miles per gallon by 2025. Instead, the average may be in the range of 50 to 52.6 mpg. Lower gas prices that have consumers flocking to SUV’s and trucks were cited as one reason for the potential shortfall, according to the Detroit News. Those vehicles lower an automakers fleet wide economy average.
The finding was part of a mid-term review of the mileage standards by the EPA, National Highway Traffic Safety Administration and the California Air Resources Board. They said even if the lower figure is met it would be a big improvement over current mileage rates. Automakers have termed the higher standards overly optimistic.
After study, the government could lower the standard. The agencies credited automakers with developing “far more innovative technologies to improve fuel economy” and reduce emissions “than anticipated just a few years ago”
Own some stock in the Detroit three? Then you will want to know that General Motors will report second quarter earnings on Thursday, Fiat Chrysler on the 27th and Ford on July 28.
Kia said its 2017 Sorento has achieved a “Top Safety Pick Plus” rating from the Insurance Institute for Highway Safety, its highest rating.