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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.

This Dodge Challenger was stolen, used in police chases and recovered all in the week before its SEMA debut

Most of the drama in a SEMA build is in getting the car ready in time for the big show. That was all Quintin Bros Auto and Performance was expecting when they built a supercharged Dodge Challenger Scat Pack with custom carbon fiber body parts, aftermarket wheels and upgraded brakes. But unfortunately, a bigger drama happened in the week leading up to the show. And it was the worst kind. As part owner Pete Quintin told us, the car was shipped out in a small trailer, and while the delivery driver was spending the Monday night a week before the show at a hotel, a thief showed up in a stolen pickup and made off with the trailer and the car. It wasn't an easy task, either, as the delivery driver had parked the trailer in with the truck blocking it. The thief used his own (well, not his own, but you know what we mean) truck to shove the trailer hitch out where he could access it, then hooked it up and took off. Several miles down the road, he parked, opened up the trailer and vanished in the Challenger. The following morning, the delivery driver discovered the theft, and Quintin Bros immediately informed the owner so that a police report could be filed and a search could begin. The trailer was found not too long after, thanks to someone who was following the story on social media. But obviously the car was missing. Folks on social media were also helpful in tracking the car, in addition to the help of the Las Vegas Police Department (LVPD). What followed was a week of chasing the car down. Twice the car was found in parking garages, Quintin said, and both discoveries resulted in police chases. The second chase was the most dramatic, with a police officer stopping after noticing the car. The thief was in it, and he bolted upon seeing the officer. He powered the Challenger right through the nose of the police car, damaging both. The chase culminated on the highway, where Quintin told us 14 cars were in pursuit, and the thief got up to 150 mph. Police ended up calling off the chase because of the danger. But the car was damaged enough that the thief eventually abandoned it at one last garage, where it was picked up on Thursday. Once the car was recovered, things gradually began looking up for the Quintin family. Pete Quintin said that as soon as LVPD found out the Challenger was meant to go to SEMA, the department got the car out of evidence impound as fast as it could so the shop could show off the beat-up car.

EV cost burden pushing automakers to their limits, says Stellantis' CEO Tavares

DETROIT — Stellantis CEO Carlos Tavares said external pressure on automakers to quickly shift to electric vehicles potentially threatens jobs and vehicle quality as producers struggle with EVs' higher costs. Governments and investors want car manufacturers to speed up the transition to electric vehicles, but the costs are "beyond the limits" of what the auto industry can sustain, Tavares said in an interview at the Reuters Next conference released Wednesday. "What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle," he said. "There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay." Automakers could charge higher prices and sell fewer cars, or accept lower profit margins, Tavares said. Those paths both lead to cutbacks. Union leaders in Europe and North America have warned tens of thousands of jobs could be lost. Automakers need time for testing and ensuring that new technology will work, Tavares said. Pushing to speed that process up "is just going to be counter productive. It will lead to quality problems. It will lead to all sorts of problems," he said. Tavares said Stellantis is aiming to avoid cuts by boosting productivity at a pace far faster than industry norm. "Over the next five years we have to digest 10% productivity a year ... in an industry which is used to delivering 2 to 3% productivity" improvement, he said. "The future will tell us who is going to be able to digest this, and who will fail," Tavares said. "We are putting the industry on the limits." Electric vehicle costs are expected to fall, and analysts project that battery electric vehicles and combustion vehicles could reach cost parity during the second half of this decade. Like other automakers that earn profits from combustion vehicles, Stellantis is under pressure from both establishment automakers such as GM, Ford, VW and Hyundai, as well as start-ups such as Tesla and Rivian. The latter electric vehicle companies are far smaller in terms of vehicle sales and employment. But investors have given Tesla and Rivian higher market valuations than the owner of the highly profitable Jeep and Ram brands. That investor pressure is compounded by government policies aimed at cutting greenhouse gas emissions. The European Union, California and other jurisdictions have set goals to end sales of combustion vehicles by 2035.