[ad_1]
Detroit – Fiat Chrysler Automobiles NV's US sales manager on Wednesday launched a lawsuit against the whistleblower against the US automaker claiming he had become the scapegoat for inflated sales practices vehicles under investigation by federal agents.
Reid Bigland oversees the Ram brand, one of Fiat Chrysler's most profitable divisions in the world. According to the lawsuit, he claims that the FCA leaders retaliated against him for cooperating with the investigation and reduced his salary to more than 90%. Bigland has lost millions of dollars and Fiat Chrysler executives plan to use the indemnity withheld to pay fines or settlements with the Securities and Exchange Commission, according to the lawsuit.
The automaker's actions will cost Bigland more than $ 1.8 million, according to the lawsuit.
The lawsuit provides a rare appearance in an ongoing federal investigation – at least one of which is aimed at Fiat Chrysler – and exposes a private divide between one of the automaker's top executives and his employer. Meanwhile, FBI agents and the US prosecutor's office are investigating corruption cases in the US auto industry and have obtained eight convictions, including Fiat Chrysler's former vice president, Alphons Iacobelli. , who was formerly the principal responsible for the manufacturer's labor relations.
"They had the biggest growth in retail sales in 17 years last year and are refusing to pay for it," Bigland lawyer Deborah Gordon told Detroit News. "Why so? Because he participated in the SEC investigation and they do not appreciate what he said."
Bigland stated that it had cooperated with the SEC investigation and had testified "at length" about Fiat Chrysler's sales reports, which it believed predated his appointment as US Sales Manager, according to Bigland. the trial.
"By the end of 2018, no doubt as a way to conclude their investigation with a result,
The SEC suggested to the plaintiff that he admits to having committed wrongdoing regarding the monthly sales reports of the defendants, "wrote Bigland's attorney in the lawsuit. The SEC also suggested a resolution entailing a penalty for FCA. Because (Bigland) did not commit any wrongdoing and there was none, he refused to do so. "
Thank you! You are almost registered for
Keep an eye on an email to confirm your subscription to the newsletter.
Late last year, Bigland wrote to federal investigators a letter outlining Fiat Chrysler's sales reporting practices, which he inherited, according to the lawsuit. According to the complaint, the sales methodology was well known throughout the company, including the late CEO Sergio Marchionne.
The letter revealed the full extent of Bigland's involvement in the government investigation and summarized that it had not improperly manipulated Fiat Chrysler's methodology for reporting sales, said the attorney of the auto ruler. Bigland sent the document to the SEC and his employer, according to the lawsuit. The reprisals soon followed.
"(Bigland) 's refusal to act as a scapegoat for the 30 years of practice of the defendants who preceded him, and his frankness with regard to the knowledge that the defendants had of this practicing before and during his tenure as head of the United States forced the FCA to retaliate against the plaintiff less than 2 months later by withholding his compensation, "wrote Bigland's attorney.
"His eligibility for incentive compensation – as that of all executives – is subject to the determination by the compensation committee of the board of directors that he has met the company's performance and personal performance requirements. applicable, "FCA said in a statement sent to the News.
"Mr. Bigland's eligibility for his award remains subject to that determination and the completion of a board-level assessment of matters that are the subject of government investigations (as previously disclosed by the Board). FCA) and to which the FCA continues to cooperate, beyond which it would be inappropriate to comment on ongoing procedures or internal compensation processes. "
Fiat Chrysler also fought back because Bigland sold its shares in the company last year, "which greatly angered the automaker, according to the lawsuit. Bigland's compensation consists of a base salary and an annual bonus and a share payment, which he generally receives in March. On March 8, Linda Knoll, human resources manager at Fiat Chrysler Global, told Bigland that the stock and bonus payments were being held indefinitely, depending on the file.
Fiat Chrysler executives cited an "internal investigation" of issues the SEC was investigating, Bigland's attorney said. The automaker's executives also confessed to being unhappy that it had recently sold its shares acquired in Fiat Chrysler.
Fiat Chrysler's decision to withhold the payment of the shares and the Bigland bonus will cost him about $ 1.8 million, according to the lawsuit.
Fiat Chrysler executives "intend to withhold these payments … and offer them, in part, in the form of a fine or settlement to the SEC at the direct expense of (Bigland), and / or suggest to the SEC to exonerate them from any further liability …, Bigland's attorney wrote.
Bigland is asking a judge to prohibit Fiat Chrysler from further wrongdoing or other forms of retail sale and is seeking an undetermined amount of damages.
Bigland added FCA's lucrative Ram Truck brand to its responsibilities in October as part of the reorganization of the new general manager Mike Manley of the automaker's executive team. Bigland took over from Manley, who had been managing Ram since 2015. Bigland is also still responsible for sales in the United States.
He joined CFA in 2006 to lead the manufacturer's Canadian operations, a position he continues to hold. During his 13-year career with the Italian-American car manufacturer, Bigland also led the Dodge, Alfa Romeo and Maserati brands.
Federal investigators began in July 2016 to probe the sales reporting processes of US manufacturers. FCA then stated that it cooperated with the investigation of the reporting of vehicle unit sales to US customers. The company said it would "cooperate fully" with "investigations of similar issues" made by the Department of Justice.
The investigations began after two Fiat Chrysler dealers in Illinois had filed a lawsuit for racketeering against the builder, alleging that the company had offered the dealers money to report unsold vehicles sold. The federal lawsuit alleged in 2016 that the company's North American company "knowingly endorsed and encouraged misrepresentations on motor vehicle sales by directly rewarding district and business center directors for monetary and quarterly bonuses." directly related to the reported sales figures of vehicles. "
The civil racketeering lawsuit alleged that a dealer had been asked to falsely report the sales of 40 vehicles in exchange for $ 20,000 in premiums paid by Fiat Chrysler to the dealer. At the time, Fiat Chrysler had stated that the lawsuit was "unfounded". A judge rejected accusations of fraud and racketeering.
Since then, Fiat Chrysler has changed the way it publishes its sales figures. Shortly after the start of the federal investigation in 2016, the automaker revised what had been presented as a series of sales increases of a duration of 75 months over twelve months. The automaker saw its sales increase about two times less, thanks to new reporting practices. The automaker settled the civil lawsuit in April 2019, according to a Wall Street Journal report.
Read or share this story: https://www.detroitnews.com/story/business/autos/chrysler/2019/06/05/fca-sales-chief-files-whistleblower-suite-amid-federal-probe/1358053001/
[ad_2]
Source link