Fiat Chrysler Subject of Criminal Probe by Feds

Auburn Hills, MI — Fiat Chrysler Automobiles NV is accused of securities fraud in a Department of Justice criminal investigation, Bloomberg News reported Monday.

The exact focus of the investigation is unclear. The carmaker is defending itself in civil lawsuits alleging that it is padding its sales numbers as well as suits regarding its handling of recalls, but it's not clear if either of those issues are the subject of the DOJ probe.

In its Jan. 14 regulatory filing, Fiat Chrysler dismissed the lawsuit as "nothing more than the product of two disgruntled dealers" and said that its own internal investigations showed the padding allegations were baseless.

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Both the Justice Department and the U.S. Securities and Exchange Commission declined to comment, Bloomberg said.

Fiat-Chrysler confirmed the criminal investigation in a statement:

"In response to press reports today, FCA confirms that it is cooperating with an SEC investigation into the reporting of vehicle unit sales to end customers in the U.S. In its annual and quarterly financial statements, FCA records revenues based on shipments to dealers and customers and not on reported vehicle unit sales to end customers. Inquiries into similar issues were recently made by the U.S. Department of Justice. FCA will cooperate fully with these investigations."

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