MUNICH (dpa-AFX) - The Securities and Exchange Commission has reportedly commenced an investigation into German luxury car maker BMW AG.
According to WSJ, the SEC is looking into the auto giant's sales practices in the U.S. to determine whether the company engaged in a technique known as sales punching.
'Punching sales ' happens when dealers buy vehicles from their own inventory and use them as loaner vehicles. Manufacturers often offer dealerships bonuses for these types of sales, with the goal being for the manufacturer to boost its retail sales figures.
'It's a fictitious way for the factories to sell product that they don't have sold,' said an anonymous dealer, according to Automotive News.
'We have been contacted by the SEC and will cooperate fully with their investigation,' a spokesman told The Wall Street Journal.
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