The U.S. Securities and Exchange Commission (SEC) is investigating BMW’s sales report. The reason for the investigation was that the SEC found that BMW’s U.S. sales figures were fraudulent. A few months ago, the Securities and Exchange Commission fined Fiat Chrysler Automobiles (FCA) $40m ($285m) for similar problems.
Phil Di Ianni, a spokesman for BMW AMERICA, said monday that the SEC had contacted the German carmaker and that BMW would cooperate fully with the investigation.
And why BMW is cheating on sales is also related to competition in the U.S. market. As of November, BMW sold 289,080 vehicles in the U.S., compared with 285,800 for Mercedes- By leading Mercedes-Benz in sales, it can attract more car owners to buy BMW to some extent. At the same time, continued increased sales will also affect investors’ investment strategies.
It is reported that BMW by using the use of ways to “increase” the market sales of models, such as requiring dealers to register unsold vehicles as sold, and then sell in the form of low-cost used cars, thereby indirectly increasing BMW’s new car sales. BMW then balanced the dealer’s loss on the sale of used cars by increasing its sales rebate subsidies. In this unusual way, BMW can achieve the illusion of “continuous growth in sales”.
It’s not the first time BMW has sold fake sales, as early as 2016, when Ludwig Willisch, then BMW’s North American CEO, admitted that BMW had cheated on sales in the U.S. market and stopped doing so in 2017.
But as things stand, BMW has not stopped selling fraud, and once it is confirmed by the SEC, it will receive hundreds of millions of sec tickets, as the FCA has.