Fiat Chrysler Is Trying To Stuff Dealer Channels With Over 40,000 Cars
As the global automobile market continues down the path of recession, it isn’t just tensions with consumers that are rising.
Fiat Chrysler is apparently at odds with many of its U.S. dealers after trying to get them to accept inventory of about 40,000 vehicles that they didn’t order, according to Bloomberg.
Four dealers came forward and said that the company has revived a “sales bank”, which is a decade old practice that is frowned upon by investors and analysts because it can muddy the waters of an automaker’s inventory figures. Dealers dislike it because it creates pressure to take delivery of vehicles they don’t want.
Chrysler had used sales banks in the two times it needed eventual rescues from the U.S. government – in 1980 and 2009.