Fiat Chrysler Automobiles NV investors reacted dramatically to the
latest concerns about automotive industry scruples after dealers accused
the company’s U.S. unit of offering money to falsify sales.
The U.S. dealers’ allegations add to the claims that are shaking investor confidence in the auto industry, with Volkswagen AG having admitted to rigging emission tests in the U.S. and Renault SA having had its offices raided, raising the specter of a VW-type scandal at the French car company.
“The perception investors have is that the sector has been lying for emissions, for bonuses, targets, whatever you want, therefore, you don’t want to be a shareholder,” said Massimo Vecchio, an analyst with Mediobanca in Milan. Given the Volkswagen scandal and the raid on Renault, “people are obviously scared.”
Chrysler plans to fight the U.S. lawsuit, which the company said in a statement is without merit.
The U.S. dealers’ allegations add to the claims that are shaking investor confidence in the auto industry, with Volkswagen AG having admitted to rigging emission tests in the U.S. and Renault SA having had its offices raided, raising the specter of a VW-type scandal at the French car company.
“The perception investors have is that the sector has been lying for emissions, for bonuses, targets, whatever you want, therefore, you don’t want to be a shareholder,” said Massimo Vecchio, an analyst with Mediobanca in Milan. Given the Volkswagen scandal and the raid on Renault, “people are obviously scared.”
Chrysler plans to fight the U.S. lawsuit, which the company said in a statement is without merit.
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