SEC Looks Into Sales Practices At BMW -- WSJ
December 24 2019 - 3:02AM
Dow Jones News
By William Boston in Berlin and Mike Colias in Detroit
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (December 24, 2019).
The Securities and Exchange Commission has opened an
investigation into whether German luxury car maker Bayerische
Motoren Werke AG manipulated sales figures, according to people
familiar with the matter.
The regulator is looking into whether the Munich-based auto
maker engaged in a practice known as sales punching in the U.S.,
the people said. Sale punching occurs when a company boosts sales
figures by having dealers register cars as sold when the vehicles
actually are still standing on car lots.
BMW acknowledged the investigation, but wouldn't comment on the
specifics of the probe.
"We have been contacted by the SEC and will cooperate fully with
their investigation," the spokesman told The Wall Street
Journal.
The SEC couldn't immediately be reached for comment.
The probe comes as the U.S. officials continue to pursue other
car companies suspected of falsifying data and misleading
investors.
Fiat Chrysler Automobiles NV in September agreed to pay $40
million to settle claims by the SEC that the company had for years
paid dealers to report exaggerated sales numbers. The company said
at the time it had reviewed and refined its sales reporting
procedures and was committed to maintaining strong controls.
Fiat Chrysler also revised monthly sales results going back
several years, nullifying a 75-month streak of sales increases.
Under those revised methods, the streak ended in September 2013,
three years earlier than it previously stated.
This year, Fiat Chrysler joined General Motors Co. and Ford
Motor Co. in ending the practice of reporting monthly U.S. sales
numbers. The companies now report their U.S. sales quarterly, while
most other major car makers still disclose results each month.
The SEC investigation also follows 2015 indictments against
Volkswagen AG of Germany on charges of defrauding U.S. consumers
and the U.S. government and violating the federal Clean Air Act by
rigging diesel-powered vehicles to cheat emissions test. That case
was brought by the Justice Department.
Volkswagen pleaded guilty to the charges in 2016 and has faced
more than $30 billion in fines, penalties and compensation
fees.
In addition, BMW faces litigation by European authorities on
allegations of colluding with rivals to manipulate prices on
technology to control emissions.
BMW, which has vowed to fight the case, in April took a $1.1
billion charge against earningsas a provision for potential fines
from the it.
BMW sold 322,862 vehicles in the U.S. in the first nine months
of the year, an increase of 1.7% from a year ago, including its
namesake BMW brands and its Mini brand.
BMW also has been under pressure in the U.S. because of the
Trump administration's trade war with China, which has hit BMW's
SUV exports from its Spartanburg, S.C., factory. BMW has responded
by shifting some production from the U.S. to China.
Nora Naughton contributed to this article.
Write to William Boston at william.boston@wsj.com and Mike
Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
December 24, 2019 02:47 ET (07:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Bayerische Motoren Werke (TG:BMW)
Historical Stock Chart
From Aug 2024 to Sep 2024
Bayerische Motoren Werke (TG:BMW)
Historical Stock Chart
From Sep 2023 to Sep 2024