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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.

2018 Jeep Wrangler to get full-time four-wheel-drive option

It appears the next-generation Wrangler will take another small step to modernization and civility. JL Wrangler Forums reports that the new Wrangler is showing up on dealer computers along with a variety of options. One of them is the inclusion of a full-time four-wheel-drive system called Selec-Trac. This means that it will be possible to simply leave the Wrangler in four-wheel drive all the time, without worrying about damaging it when pavement is dry, much like the all-wheel-drive systems on most modern crossovers. This might concern Wrangler purists, but there are a couple of reasons not to fret. For one, although Jeep doesn't have a Selec-Trac system on the market to compare to right now, the old Selec-Trac system offered on the Jeep Liberty had a low-range for off-roading, so this one probably will, too. For another, only one kind of Wrangler will offer this feature, according to JL Wrangler Forums. The Selec-Trac system will only be available on the four-door Wrangler Unlimited Sahara, the version that's arguably the most luxurious, and the body-style with the longest wheelbase. All the others will only have the classic selectable four-wheel drive. There is another interesting feature noted in the JL Wrangler Forums collection of information. Apparently the four-cylinder engine will have a combination starter and generator driven by a belt. This is interesting, because the only other car we've seen with such a component is the new Audi A8. In that application, the belt-driven starter and generator is used for smoother, faster starting and stopping to save fuel. We would guess the Jeep's system works in a similar way, though likely without the support of a 48-volt electrical system. We will likely know more when the new Wrangler makes its debut, which is expected at the L.A. auto show this year. Related Video: Featured Gallery 2018 Jeep Wrangler Spy Shots Related Gallery 2018 Jeep Wrangler Hood Spy Shots News Source: JL Wrangler ForumsImage Credit: KGP Photography Jeep SUV

Jeep Cherokee joins Altitude trim line

Jeep fans spoke up last year by naming the Altitude trim level, and the automaker rewarded them with an assortment of cool Jeeps sporting a sinister, blacked-out appearance. Joining the ranks of Jeep models offering an Altitude trim level is the 2014 Jeep Cherokee, and this might be the best looking of the new Cherokees - including the Trailhawk.
Like the previous versions of this model, the 2014 Cherokee Altitude adds black wheels and exterior trim and molding, and it's only offered in four colors: black, silver, white and granite (shown above). You definitely have to love the look of the black accents since the Altitude raises the Cherokee's price by $2,000 to a starting MSRP of $24,995 (not including destination). Jeep says that the 2014 Cherokee Altitude is a limited-edition model, but there is no mention of any specific production figures.
Joining the new Cherokee Altitude are the updated versions of the Grand Cherokee Altitude and Wrangler Altitude with similar limited color combinations and pricier MSRPs starting at $35,290 and $31,595, respectively. These three new Altitude models will go on sale this spring joining the Compass Altitude and Patriot Altitude, which are on sale now. Scroll down for more info on the updated 2014 Jeep Altitude lineup.