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NHTSA investigating Chrysler for airbags, ignition switches

Chrysler is being targeted by the National Highway Traffic Safety Administration in a pair of actions that focus on over 1.2 million Jeeps, minivans and crossovers.
The first is a "preliminary investigation" that focuses on an airbag issue afflicting the Jeep Commander built in model years 2006 and 2007 and Grand Cherokee from 2005 to 2006. In total, 700,000 vehicles could potentially be affected. It's not entirely clear what the airbag issue is, with The Detroit Free Press simply stating that the restraint systems in the affected Jeeps may be "faulty."
The other investigation is what's called a "recall query" and it covers a problem that General Motors should be familiar with. In this case, there could be a problem with the ignition switches of 525,000 vehicles, ranging from 2008 to 2010 Chrysler Town & Country and Dodge Grand Caravan minivans, to the 2008 to 2010 Dodge Journey crossover. Again, it's not entirely clear what sort of behavior prompted the 32 complaints that NHTSA has received on these vehicles.

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.

A Mazda Miata with a Hellcat V8 exists, and it can be yours

Mazda Miatas with V8 swaps aren't unusual. Kits are available to drop in LS V8s from GM, and some even let you drop in an old Ford 5.0-liter V8. But a Miata with a Hellcat V8 is something special, and this one can be yours. As Automobile spotted, it will go across the block at the Barrett-Jackson Las Vegas auction. This particular 1999 Miata has a build history you can check out for yourself, too. It was all chronicled on YouTube channel KARR. Obviously the Hellcat engine does fit between the wheels, but the hood had to be cut open for the intake manifold and supercharger to fit. The front bumper and lights have been changed to the 2001+ NB Miata design. According to the listing, it has suspension components from V8 Roadsters, a company that specializes in Miatas with twice the normal number of cylinders. In the middle of the car is a manual transmission, which connects to a Ford 8.8-inch differential that's been welded up. With that much power and an essentially locked rear diff, it should make for an excellent drift car. Fortunately it also has 10-inch wide wheels for more grip, and upgraded Wilwood brakes to stop it. It will go for auction at Barrett-Jackson's Las Vegas event, which runs Oct. 3-5. There is no estimated price for the car, which is understandable since nothing like it has crossed the block before. It will go to a new owner, whatever the price, as it is being listed as "no reserve." So if you want to win burnout contests or get loads of stares at next year's Woodward Dream Cruise, you could do a lot worse than picking up this tiny monster. Aftermarket Dodge Mazda Convertible Performance Hellcat