here’s what’s happening: the SEC’s investigation is about the manner in which BMW reported its US sales figures. In a practice known as “punching,” BMW could have increased its apparent sales numbers by requesting dealerships to register cars as loaners, and later sell them as used with very little mileage on them. As a result, “punching” sales can help dealers in hitting company targets, resulting in automakers achieving higher sales results.
This was talked about at length yesterday.
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