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Ford and Chrysler reducing summer plant shutdowns

Most domestic automaker assembly plants traditionally take a couple of weeks off during the summer. The shutdowns give each plant time for much needed repairs and maintenance, and in some cases, help better align production with demand. Not this year, though, as demand for many models is outstripping what Ford, Chrysler and General Motors plants can produce.
Ford has announced that it will shorten its annual summer shutdown for most North American plants from two weeks to one. The shorter shutdown will increase the carmaker's annual North American production by 40,000 units on top of the 200,000 extra units that it was already planning to produce this year versus last. Automotive News reports that Ford produced 2.8 million vehicles on this continent in 2012, and that output this year has already increased 13 percent through April.
Chrysler, meanwhile, is also operating at full tilt and plans to run some plants through the summer with no shutdown at all. Those not getting a break include Jefferson North where the Jeep Grand Cherokee and Dodge Durango are assembled, Toledo North that will assemble the new Cherokee, and Conner Avenue, home of SRT Viper production. Other assembly plants will be down for a single week, while all of Chrysler's engine and transmission plants except one in Indiana will continue operating with no shutdown this summer.

Junkyard Gem: 2002 Chrysler PT Cruiser Convertible Conversion

Chrysler started selling PT Cruisers for the 2001 model year, and these "trucks" (yes, they were considered trucks for American regulatory purposes) proved quite popular for at least the first half of the 2000s. A factory-built version with a convertible top appeared for 2005 (and later "won" the Top Gear Worst Car of the Last 20 Years award), but what about the PT Cruiser shoppers who wanted a drop-top before then? It turns out the aftermarket had the solution: the Newport Convertible Engineering conversion, which took new PT Cruisers and added a fully functioning convertible top. According to a discussion on Allpar, 54 of these conversions were performed, and I found one of them in a Denver-area self-service yard last month. Newport Convertible Engineering is still around, though they're in Huntington Beach instead of Placentia these days. If you want a Tesla Model S or Range Rover convertible, they'll build it for you. The NCE conversion for the PT Cruiser cost $9,900 (about $15,715 in 2022 dollars) plus the $17,000 sticker price of a new PT Cruiser, and included the needed chassis-stiffening modifications and a shortened, hydraulically-actuated rear hatch. The materials used look pretty good, even after 20 years of abuse and neglect. This one had the convertible mechanism ziptied shut in many locations when I found it. Naturally, I cut all those zipties to see if the roof mechanism still worked. It was very, very stiff but proved semi-functional (the zipties appeared to be an attempt to keep a faulty latch mechanism from letting the roof pop open at speed). The roof assembly weighs a lot, though you could spend an extra $3,000 to get a power-actuation system from NCE. This cab must have been extremely noisy and buffety with the top down at speed, but so what? Convertibles are cool. Mechanically, it's an ordinary Touring Edition with a Neon's 2.4-liter four-cylinder making 150 horsepower. You could get a PT Cruiser with a five-speed manual transmission, and many did, but this one has the extra-cost automatic. Starting in the 2003 model year, a 215-horse turbocharged engine became available. Rare, but not valuable. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This commercial is for the factory convertible, but you get the idea.

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.