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Tempted by the Demon, dealers find way to thwart Dodge, jack up prices

It's the eternal story of short supply, big demand - and car dealers eager to exploit that dynamic, especially when it involves a hot car. A few weeks ago, when Dodge announced that it devised a way to attempt to prevent price-gouging on those 840-horsepower 2018 Dodge Demons, you just knew the dealers would dream up some devilish end-run. And sure enough, despite the manufacturer's best intentions, Demon order slots are being offered with five-figure markups. Here's how things were supposed to work: With a run of just 3,000 cars, Dodge knew it had to do something to address dealer greed, so it announced an allocation system: Cars purchased at or below the $86,090 MSRP would be the first orders filled and delivered. If a dealer sells an allocated Demon for more than sticker, that car goes to the end of the line for production and delivery. Dodge also ensured dealers wouldn't stockpile or hoard Demons by limiting the number of orders a dealer can submit and allocating cars to dealers based on how many Challenger and Charger Hellcats the dealer has sold. But Automotive News reports that some dealers are using intermediaries to auction off their Demon allocations on eBay. Three sellers last week said they were representing dealers in South Carolina, Tennessee and Louisiana, and auctioning off the right to buy a car in one of the priority spots at MSRP. The minimum bid for the right to buy the car at sticker? From $10,000-25,000. And previous transactions on eBay might have run as high as $75,000. So early buyers are definitely paying an upcharge - but it's a thing apart from the bottom line on the order form, where it appears they are paying MSRP. In other words, a scheme that violates the spirit of what FCA tried to do. A source at FCA told Automotive News the automaker was monitoring the practice but could do little to stop it. And the report quoted a Hellcat owner who said his dealership was ignoring Dodge's strictures altogether and offered him a Demon at MSRP plus $60K. But take heart. Not all car dealers are cynically opportunistic - or rather, some see an opportunity for doing good, not making buck. Automotive News says Bill Marsh Chrysler in Traverse City, Mich., plans to sell its single allocated Demon for $1 under MSRP - and is auctioning off the right to buy it, with the dealership's existing customers eligible to bid. The auction's proceeds will benefit four Traverse City charities.

Fiat Chrysler taps Amazon, Shell execs to fill roles

MILAN — Fiat Chrysler Automobiles is tapping executives from Amazon and Shell Oil Company with previous automotive industry experience to fill its ranks. CEO Mike Manley said in a letter to employees Thursday that Mark Stewart would join FCA as chief operating officer of North America from Amazon, "a company known for its culture of innovation, and obsession with delivering incredible value to customers." At Amazon, Stewart led teams focused on advanced robotics, artificial intelligence and automation methods. He previously was COO of ZF TRW automotive components supplier. Niel Golightly was named head of global communications. He was most recently Shell's vice president for external relations in North and South America, with a focus on reputation, brand and stakeholder engagement beyond communication strategies. He previously held roles at Ford Motor Company. Related Video: Image Credit: REUTERS/Rebecca Cook Hirings/Firings/Layoffs Alfa Romeo Chrysler Dodge Fiat Jeep RAM FCA Amazon shell Mike Manley

Dodge says three new variants of the Charger and Challenger are on their way

Introduced in 2008, the current Dodge Challenger is one of the oldest new cars on the American market. It's not ready to retire, and documents published by Canadian union Unifor confirm it will remain in production until at least 2023. Better yet, the company announced it will release several new versions of the car in the coming years. Fiat-Chrysler Automobiles (FCA) narrowly avoided a costly strike by signing a new three-year agreement with Unifor, the union that represents most of its Canadian workers. It pledged to inject $1.58 billion Canadian (about $1.2 billion U.S.) into its local operations while creating 2,000 new jobs in the nation. Some of that money will be allocated to the Brampton Assembly factory located on the outskirts of Toronto, where it will be used to build three new variants of Dodge's Charger and Challenger models. Details about what the company has in store weren't included in the release, but Dodge has shown it's capable of mustering an unusually high level of creativity when it comes to keeping the Challenger and the Charger fresh. Hellcat, Demon, T/A 392, and Super Stock models have joined the range in recent years, and its efforts have paid off, as 60,997 units of the Challenger were sold in the United States in 2019. It even outsold the Camaro and the Mustang during the third quarter of the year. Annual Charger sales jumped by 21% to 96,935 units in 2019. With that said, Dodge's definition of a new variant is murky. It could be alluding to a trim level, an option package, a limited-edition model, or a face-lifted version. Regardless, we're betting they'll be exceptionally powerful. Chrysler will continue to build the 300 in Brampton through 2023, too, but there's no word on what the future has in store for the sedan. It's also relatively old, but it's not faring nearly as well as its Dodge-badged siblings. Sales fell to 29,213 units in 2019, a 37% drop compared to 2018, and the lineup was pared down for 2021. Moving west, the Windsor factory will be retooled to build plug-in hybrid and electric vehicles, and it will be assigned at least one new model, but FCA didn't reveal what it will be, or when we'll see it. Industry whisperings claim that's where the production version of the CES-friendly Chrysler Portal concept will be built.