When Fiat’s high flying executives ordered an internal review back in 2015 they discovered thousands of vehicles that were declared sold had actually never been sold. The illegal practice was ended immediately, it is estimated that between 5,000 – 6,000 vehicles were reported as sold by Fiat dealers across the US. Boosting sales month by month appeals to the brands stock market value and could add hundreds of millions to Fiats share value. So why did Fiat allow this practice to go on? Part of the reason stems from Fiat corporate executives putting pressure on sales managers to simply sell more units in a bid to reach aggressive targets. So why would Fiat pressure it’s sales territories to make up sales figures? Because Fiat doesn’t sell enough vehicles as it should in order to stay solvent in the US. Another reason is that to keep the share value of Fiat/Chrysler high it needs the stock markets confidence. Confidence means more investment and borrowing from major financial institutions. However Chrysler is enjoying record sales which in part covers any losses incurred by Fiat. But just how many phantom Chrysler sales have been registered isn’t clear. Fiat’s practice of phantom sales has occurred for 75 consecutive months before it was stopped early this year. Now the Securities Exchange Commission and Department of Justice has become involved having been drawn to the smoke created by Fiat. Investigations have already begun with both government departments initiating contact with current and former Fiat/Chrysler employees. In January Fiat was accused by dealerships of paying them to over-inflate sales. Federal investigations are at an early stage and Fiat is said to be co-operating with state officials. Fiat’s defence is “annual and quarterly financial statements, it records revenues based on shipments to dealers and customers and not on reported vehicle unit sales to end customers.” Both the SEC and DOJ have yet to make any official comment to confirm whether preliminary investigations will go any further. However our sources tells that both state institutions had spotted the smoke and will determine whether any wrong-doing i.e fraud was committed by Fiat.