2007 Jeep Patriot Sport 4 Wheel Drive (4x4) on 2040-cars

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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.

Chrysler teases upcoming outlay of SEMA cars

Fiat Chrysler Automobiles is hauling a multitude of modified models to the annual SEMA show in Las Vegas this November, and the company is releasing the first teasing sketches of many of them.
Unfortunately, FCA isn't giving many solid details on any of the concepts other than saying the vehicles from Chrysler, Jeep, Dodge, Ram and Fiat all benefit from tuning from its Mopar performance brand. The teaser photos include a sinister-looking Chrysler 200S, Fiat 500 Abarth with two-tone paint and a scorpion on the hood, a red and black 500L, seemingly two different takes on the Jeep Renegade, a green Dodge Challenger wearing the T/A badge, an orange and black Dart, a very neon Charger, just the outline of a red and black Viper, a Ram ProMaster in Mopar livery and a Ram pickup called the Outdoorsman.
Take a look through the gallery to see what you think of the sketches for these concepts, and scroll down for the full announcement from FCA.

Jeep and Ram do the pre-Super Bowl ad thing again

Fiat Chrysler is experimenting this year with pre-Super Bowl advertising that isn't — yet — Super Bowl advertising. The automaker's released five ads so far this week for Jeep and Ram. including two more today for the new Ram heavy duty trucks. But at the moment there are no plans to run them during the game. With a new focus on efficiency, the marketing team at Auburn Hills wants to see how the spots play online. The latest long-form Ram ads are called "Roll Rams Roll" and "Fourth Quarter," to go along with the long-form spot, "Make Sure of It," featuring the new voice of Ram commercials, actor Jeremy Renner. The latter spot represents the beginning of a collaboration with Ram and Renner. The wide-ranging actor will provide vocals for Ram's new campaign called "Led or Be Led" that begins later this month. "Roll Rams Roll" presents the classic scenario of two folks arriving at a four-way intersection at the same time. This time, however, one party is a seriously gung-ho tailgating crew in a Ram 3500 HD pulling a giant travel trailer, the other is a ginormous herd of Rams that have come from across the country to see their namesakes play. "Fourth Quarter" celebrates the unheralded workers who, like the best players, give their all until the final whistle, no matter how long it takes for that whistle to blow. Over in the Jeep-verse, fresh off of crushing a 1963 Gladiator, the off-road brand continues the association with the band OneRepublic that began last summer. The group mostly lets the images do the singing in the spot "More Than Just Words," which pairs the lyrics of the U.S. national anthem with representative visuals. FCA marketing honcho Olivier Francois called the week's commercials "a taste of what's to come." Whether that taste comes during the game, we don't know. Spots are rumored to cost $5.5 million for 30 seconds this year, up from $5.2 million last year, which comes on top of production costs that run into the millions. If an ad does well online, there's a chance it could appear during the show in Atlanta. Otherwise, you can check them out above and below, and watch out for rumored multi-brand Twitter shenanigans during the game. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences.