Lawstreet Journal

BMW to pay $18 million U.S fine to resolve inflated sales probe

Lawstreet Journal 27 Sep 2020 8:57pm

Image courtesy: Lawstreet Journal Business BMW to pay $18 million U.S fine to resolve inflated sales probe

BMW AG and two U.S. subsidiaries agreed Thursday ( September 24, 2020) to pay an $18 million (£14.1 million) U.S. fine to resolve accusations that they disclosed misleading information about the German luxury automaker’s retail sales volume in the United States while raising approximately $18 billion from investors in corporate bond offerings.

The U.S. Securities and Exchange Commission said from 2015 to 2019, BMW inflated reported U.S. retail sales, which helped BMW close the gap between actual retail sales volume and internal targets and “publicly maintain a leading retail sales position relative to other premium automotive companies.”

It added BMW of North America “maintained a reserve of unreported retail vehicle sales — referred to internally as the ‘bank’ — that it used to meet internal monthly sales targets without regard to when the underlying sales occurred.” The SEC probe started in late 2019, BMW said.

“There is no allegation or finding in the Order that any BMW entity engaged in intentional misconduct,” BMW said in a statement, adding it “attaches great importance to the correctness of its sales figures and will continue to focus on thorough and consistent sales reporting.” The SEC said BMW “paid dealers to inaccurately designate vehicles as demonstrators or loaners so that BMW would count them as having been sold to customers when they had not been.”

“BMW misled investors about its U.S. retail sales performance and customer demand for BMW vehicles in the U.S. market while raising capital in the U.S.,” said Stephanie Avakian, the SEC director of the… Continue Reading...


Tagged: BMW  
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