Feds fine BMW $18 million for allegedly inflating sales numbers

The feds slapped German automaker BMW with an $18 million fine for allegedly inflating its sales figures while raising billions of dollars from investors.

The Munich-based company’s North American unit juiced US sales numbers from 2015 to 2019 to close the gap between its actual performance and internal targets, the Securities and Exchange Commission said Thursday.

The scheme involved a “bank” of unreported vehicle sales that BMW of North America used to meet its monthly goals regardless of when the sales actually occurred, officials alleged. The luxury automaker also paid dealers to inaccurately label cars “loaners” or “demonstrators” so it could falsely claim they had been sold to customers, authorities said.

BMW used these practices while raising about $18 billion through several corporate bond offerings, officials said. The information BMW gave investors for those offerings contained “material misstatements and omissions” about its US retail vehicle sales, according to the SEC.

“Companies accessing US markets to raise capital have an obligation to provide accurate information to investors,” Stephanie Avakian, director of the SEC’s enforcement division, said in a statement.

BMW and its American subsidiaries involved in the case, BMW of North America and BMW US Capital, agreed to the $18 million penalty without admitting or denying any of the SEC’s findings, the agency said.

The fine was less than 1 percent of the amount of money BMW allegedly raised from the bond offerings. But the SEC said it accounted for BMW’s cooperation with its probe even as the coronavirus pandemic forced companies around the world to close their offices.

BMW said most of the sales inflation happened more than three years ago and claimed it was the result of negligence rather than “intentional misconduct.”

“The BMW Group attaches great importance to the correctness of its sales figures and will continue to focus on thorough and consistent sales reporting,” the company said in a statement.

With Post wires

Source Article

send message
Iam Guest Posting Services
I Have 2000 sites
Status : Indexed All
Good DA : 20-60
Different Niche | Category
Drip Feed Allowed
I can instant publish

My Services :

1. I will do your orders maximum of 1x24 hours, if at the time I'm online, I will do a maximum of 1 hour and the process is
2. If any of your orders are not completed a maximum of 1x24 hours, you do not have to pay me, or free.
3. For the weekend, I usually online, that weekend when I'm not online, it means I'm working Monday.
4. For the payment, maximum payed one day after published live link.
5. Payment via PayPal account.

If you interesting, please reply

Thank You