According to a report in Reuters, the findings of an internal investigation conducted by Geely-owned Volvo is that its Chinese dealers vastly overreported their sales numbers in 2011, then even more vastly underreported their 2012 sales figures. About "half the dealers" out of the 151 total outlets gamed the system in order to get incentives for reaching volume objectives, falsely recording about 7,000 more units sold than was actually the case. Instead of 47,140 cars sold in China in 2011, the real number should have been 39,871.

Volvo corporate books a sale once it ships a car to a dealer, so that meant there were 7,000 more cars in inventory than there should have been. To restore the balance, the dealers underreported their 2012 sales while they unloaded those extra cars since, naturally, they couldn't claim the sale again. That made it look like sales declined by 11 percent in 2012, even though they actually increased year-on-year. The adjusted sales number for 2012 totalled 45,896.

Volvo has met with its dealers and told them to stop the deceitful practice. The discrepancies weren't so great that the company plans to restate its historic numbers, but from now on, it apparently plans to occasionally check inventory to make sure the numbers match and that it has a true picture of how individual models are selling.

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    • 1 Second Ago
      • 1 Year Ago
      Who cares? Leave 'em to eat each other!
      • 1 Year Ago
      Wait, chinese people cheating with numbers to put themselves in a favorable light? Why, that's unheard of!!
      The Wasp
      • 1 Year Ago
      Let's not forget that some of the the western automakers and dealers also do whatever they can to misrepresent their sales.
      • 1 Year Ago
      BMW was doing the same thing in the US for years....... but I guess everyone forgot about that.
      Daniel D
      • 1 Year Ago
      If you are doing business in China, checking your inventory as Volvo describe it, should be a regular practice. You are dealing with a different culture, with different values to the west.
      Street King
      • 1 Year Ago
      Barbarians..what do you expect
        Al Terego
        • 1 Year Ago
        @Street King
        Total barbarians. Starting wars on false premise, funding terrorist organizations to fight each, stripping citizens' rights one at a time, colluding with banks and corporations to steal federal money etc., etc. No wait, what country are we talking about?
        • 1 Year Ago
        @Street King
        Chinese? Cheating? No way!!...
          • 1 Year Ago
        • 1 Year Ago
        @Street King
        Americans have so much beef with everyone. Shut your mouth and go to school
      • 1 Year Ago
      The Chinese lying and cheating?! That never happens!
      • 1 Year Ago
      What's new here - Chinese cheat, steal, knock off, fake while polluting and wasting valuable resources making all that horrible c#$%&p that goes to landfills almost immediately after it leaves wal-marts, shouldn't be news by now.
        • 1 Year Ago
        Dealers in the USA do it too. It is pretty common place just on a smaller scale.
        Houmpheng Phonsavath
        lol! Who do you think was causing the housing bubble and financial crising in 2008??
      • 1 Year Ago
      i don't see how this benefits the'll end up with a lot of last years model in your inventory, why is that beneficial again?
        • 1 Year Ago
        Incentives from the manufacturer to the dealer. Sales Levels dictate bonus payments, pricing, marketing incentives and a lot of other direct financial benefits are determined by dealer sales volume.
      XJ Yamaha
      • 1 Year Ago
      Such a progressive country.
        Bruce Lee
        • 1 Year Ago
        @XJ Yamaha
        You're right, car dealers elsewhere are all totally upstanding and never rig the numbers
      • 1 Year Ago
      lols, Chinese, numbers, cheating? hows that not logical. can only blame yourself volvo.
      • 1 Year Ago
      That thud you heard was me falling out of my chair with shock.
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