NEW YORK (AFP) – United States (US) securities regulators charged BMW with inflating its retail sales volumes to investors, fining the luxury car company USD18 million in a settlement announced on Thursday.
BMW of North America, a subsidiary of the German company, provided inaccurate and misleading information while raising USD18 billion in corporate bond offerings, the Securities and Exchange Commission (SEC) said.
From 2015 to 2019, BMW relied on a reserve of unreported car sales that it used to meet targets regardless of when the sales took place. BMW also inaccurately designated some vehicles as sold when they had not been, and adjusted its sales reporting calendar in 2015 and 2017 to meet targets or bank excess sales for future use.
“Companies accessing US markets to raise capital have an obligation to provide accurate information to investors,” said SEC Enforcement Director Stephanie Avakian.