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How Dodge dealers are earning the right to sell Hellcats

We all hate the idea of the dreaded dealer markup when it comes to buying a highly anticipated new car. Take the 2015 Dodge Challenger SRT Hellcat, for example. You might spend hours reading about its supercharged V8 and speccing the model just right in the configurator, but when it finally comes down to laying down the cash, the dealer adds thousands of dollars as a "market adjustment" on the muscle machine of your dreams. As it turns out, when the Hellcat starts hitting showrooms in the third quarter, Dodge is trying to make sure that's not the case.
Dealer orders for the much-hyped Hellcat recently started, but Dodge boss Tim Kuniskis has put some special caveats in place to ensure that the Hellcat makes it to the road quickly. The initial allocation is based on the number of Dodge products that a showroom has sold in the last 180 days, and a second allotment in December is based on the last 90 days of sales and 30-day turnover. "You sell a lot of Darts for me, Journeys for me, Durangos for me, I'm going to give you the rights to this one, too, because this is a halo of the brand," said Kuniskis to Automotive News.
Furthermore, how quickly the Hellcat sells is also going to decide whether showrooms get more of them. "If you want to market-adjust the car, that's your right. But if your days-on-lot goes above what the other guys that are selling them at MSRP is, they will end up earning the allocation because their days-on-lot will be lower," he said to Automotive News. Obviously, this doesn't prevent dealers from marking up the Challenger SRT, but the strategy certainly discourages it.

Fiat Chrysler dumped 40,000 unordered vehicles on dealers

In a move that echoes recent history, Fiat Chrysler has been making more cars and trucks than dealers in the U.S. are willing to accept, with Bloomberg reporting that at one point the automaker had built up a glut of around 40,000 unordered vehicles. That’s led some dealers to accuse FCA of reviving the dreaded “sales bank” accounting practice of obscuring inventory to improve the balance sheet. The company reportedly began building up its inventory of unordered cars this summer despite an industrywide slowdown in sales and an eagerness by some dealers to thin their inventories because rising interest rates are making it more expensive to hold unsold cars. The inventory build-up also coincided with Fiat ChryslerÂ’s efforts to find a merger partner, first with Renault, which fell through, then last monthÂ’s announcement that it will merge with FranceÂ’s PSA Group. FCA denies any such scheme and tells Bloomberg the rising inventory is down to a new predictive analytics system designed to better square supply with demand from dealers that is helping the company save money and narrow the numbers of unsold vehicles. The company recently agreed to pay a $40 million civil penalty to the U.S. Securities and Exchange Commission to settle a complaint that it paid dealers to report fake sales figures over a span of five years. While no one is suggesting that FCA is in dire financial straits — the company saw higher than expected earnings in the third quarter and record profits in North America — the practice has strong historical precedent by Chrysler, which built up bloated inventories in the run-up to its two federal bailouts, in 1980 and 2009. It was also common at GM and Ford during the 2000s, when all three Detroit automakers struggled with excess manufacturing capacity and plummeting sales in the lead-up to the Great Recession. Back in 2012, CFO Magazine wrote about a report that explained automakersÂ’ rationale for the practice and how it works: Say fixed costs for a given factory are $100, and that the factory can make 50 cars. Consumers, however, demand only 10. Under absorption costing, if the company makes all 50 cars, its cost-per-car is $2. If it makes only up to demand, or 10 cars, the cost-per-car is $10. Although each car adds variable costs for steel and other parts, if those costs are low, the company still has an incentive to make more cars to keep the cost-per-car down.

Awesomely '80s time-capsule Dodge Daytona Turbo on Bring a Trailer

From the humble K-car, Chrysler in the 1980s was able to spin out all manner of variants, including some fairly credible (for the time) performance machines. One of the most ambitious was the Dodge Daytona Turbo, and a rarely seen example in near-new condition is selling today on Bring a Trailer. [UPDATE: The car was bid to $9,300 but failed to meet reserve. It is now for sale on the dealer's website with an asking price of $19,900.] The Daytona Turbo featured a 2.2-liter four to which was bolted a Garrett To3 turbocharger, bringing output to 143 horses and 160 pound-feet. Naturally, it's paired with a five-speed stick. And dig that black-and-white checkerboard cloth interior, with four bucket seats. The story is that the car was purchased new in Kansas, and that after driving it for two years, the original owner put his prized Daytona up on jack stands and stored it in a climate-controlled garage. This Dodge now has just over 5,000 miles on the clock. If all of the above sounds enticing, you'll be powerless to resist after watching the launch commercial for the Daytona. BaT commenter "Himselvis" posted a link to the 2-minute cinematic masterpiece, which is equal parts "Blade Runner" and Michael Jackson's "Thriller." Some heavy-duty talent was brought to bear on the project, as he recounts: "The director, Bill Butler, was the cinematographer on 'Jaws,' 'Deliverance,' 'Grease,' and 'One Flew Over the Cuckoo’s Nest.' Production designer Jim Spencer had worked on 'Gremlins,' 'Poltergeist,' and 'Stripes.' Director of photography David Watkin shot 'Out of Africa,' the BeatlesÂ’ 'HELP!' and 'Chariots of Fire.' The voiceover was provided by Billy Dee Williams." And the actor was from "Hot Dog the Movie." But the real star is the car, of course. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.