09-24-2020, 07:15 PM | #1 |
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SEC: BMW to pay $18M penalty for inflating monthly sales figure
• SEC announces settlement of charges against BMW for disclosing inaccurate and misleading monthly retail sales volume to bond investors. The violating companies BMW AG, BMW NA and BMW US Capital agreed to pay a joint penalty of $18M.
• From 2015-2019, BMW inflated its reported retail sales in the U.S., which helped BMW close the gap between its actual retail sales volume and internal monthly sales target, according to SEC report. • With inflated numbers, the company raised approximately $18B from investors in several corporate bond offerings. • The order also finds that BMW NA paid dealers to inaccurately designate vehicles as demonstrators or loaners so that BMW would count them as having been sold to customers when have had not been. |
09-24-2020, 07:47 PM | #2 | |
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09-24-2020, 08:32 PM | #5 |
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09-24-2020, 10:30 PM | #7 | |
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BMW: um, what? Ooo, ouch, yeah sure ok, whatevs |
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09-24-2020, 10:47 PM | #8 |
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A light pat on the shoulder...you naughty boy
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09-25-2020, 08:21 AM | #9 | |
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Extremely similar to you telling your bank your income was higher than it really was to get a better rate on your $200k home loan. As an example, you get a 3% rate instead of 4%. The $200k loan is not profit, the lower rate saves you a small part of the loan. Wouldn't make sense to give you a penalty anywhere close to $200k because of the slightly better rate you got.
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Last edited by David70; 09-25-2020 at 08:39 AM.. |
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09-25-2020, 08:42 AM | #10 | |
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09-25-2020, 10:20 AM | #11 | |
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I don't see the hypocrisy in what you sign, different groups continue to create and try to enforce rules and other groups continue to breaks rules and laws, some get caught. Not like the corporation is one person both creating and breaking the law.
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09-25-2020, 11:29 AM | #13 | |
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09-25-2020, 12:05 PM | #14 |
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Well played BMW, well played.
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09-25-2020, 12:16 PM | #15 | |
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09-25-2020, 12:55 PM | #16 |
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Consideration of potential SEC issues may've just been overlooked in the "effort to publicly maintain a leading position relative to other premium automotive companies".
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09-25-2020, 04:48 PM | #17 |
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+1, the SEC isn't toothless, but they're pretty short on teeth.
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09-26-2020, 11:45 AM | #18 |
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I wish I was surprised by the SEC's response, but I'm not. $18m isn't a deterrent to BMW or other automakers not pull this stunt again in the future. The only way to make corporations actually change their methods is to truly hurt them...and this isn't hurting.
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09-26-2020, 04:31 PM | #19 |
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WSJ: https://www.wsj.com/articles/bmw-set...on-11600988637
("BMW Settles SEC Charges Over Sales Disclosures for $18 Million - Regulator says auto maker had provided inaccurate information regarding its U.S. retail sales") "The regulator found that the Munich-based auto maker had provided inaccurate information regarding its U.S. retail sales while raising roughly $18 billion from bond investors. Between 2015 and 2019, BMW had boosted sales figures by having dealers register cars as sold when the vehicles were still on the lots, the SEC said. The practice is known in the U.S. as sales punching.
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09-28-2020, 02:53 AM | #22 | |
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Lots of car companies inflate sales figures that way. Unhealthy, because making life even more difficult the subsequent year. In life there are good days and bad days, evolving with ups and downs, progress and setbacks. It's a flawed, unnatural reasoning to expect growth each year. Way too many variables as life and society moves on day after day, offering new challenges and opportunities. |
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