In a nutshell, the latest in a series of major scandals that have plagued the embattled automotive industry over the past two years has been a failure of regulators to adequately regulate the industry, according to the U.S. Securities and Exchange Commission.
A recent poll found that 60 percent of respondents believe that the automotive industry has not been doing a good job regulating itself.
The agency, which is overseeing the nation’s largest auto market, is in the midst of an investigation into what happened at the Detroit auto show in June 2016.
It was widely reported at the time that Tesla, the largest automaker in the United States, paid off the entire company of a former top executive to get the auto show back on track.
In addition to the allegations against Tesla, a new report from the New York Times and CNBC has also implicated the Fiat Chrysler Automobiles group, the automaker that owns Chrysler.
Fiat Chrysler paid former Fiat Chrysler CEO Sergio Marchionne $1.2 billion for a decade of services in exchange for him being allowed to continue his position at the company, the Times reported.
“There’s no doubt about the fact that there was a lot of money exchanged for the company,” Richard Branson, the billionaire entrepreneur who is also the chairman of Virgin Group, told CNBC on Tuesday.
“There’s absolutely no doubt that there is money being made out of that.
I don’t think there’s any doubt that if we were in the business of running a company like Fiat Chrysler, the biggest problem would be the fact of corruption.
It’s not going to happen.”
Fiat Chrysler and Tesla were both acquired by Fiat Chrysler last year for $680 billion.
Bridanson is also reportedly trying to buy up the shares of other companies that are currently in bankruptcy protection, including the General Motors and Ford car companies.
As of now, Tesla is still trading on the New Jersey stock exchange at $6.43 a share.
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