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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.

Jeep Grand Commander three-row crossover SUV revealed in Beijing

Jeep has finally revealed its first three-row SUV since the Commander, and the new one is called, as we expected, Grand Commander. And it looks just like we expected from leaked images and patent drawings. It pulls a bit of inspiration from the Jeep Yuntu concept, but it generally looks like a much bigger, stretched-out Compass. We do see a bit of Renegade inspiration in the D-pillar, though. Interestingly, the Grand Commander isn't really bigger than our Grand Cherokee. The Grand Commander is just under 192 inches long, which is only 2 inches longer than the Grand Cherokee. But the Grand Commander's wheelbase is four inches shorter. It's also about two inches narrower than the Grand Cherokee. This is all interesting considering the Grand Commander's greater passenger capacity. Also interesting is the Grand Commander's powertrain. It's only available with a turbocharged 2.0-liter four-cylinder, likely lifted from the Jeep Cherokee and Wrangler. If so, it's been detuned, and it now makes just 231 horsepower and 258 pound-feet of torque as opposed to the 270 horsepower and 295 pound-feet in the other Jeeps. The Grand Commander's four-cylinder is also paired to a nine-speed automatic, and it can be had with either two-wheel or four-wheel drive. The question of course is, will the Grand Commander come to America? It would fill a gap in the Jeep lineup, since the brand has no three-row vehicles. There have been many rumors of a three-row Jeep, possibly called Grand Wagoneer, as well as Grand Commander prototypes running around the U.S. But the size of the Grand Commander has us questioning whether it would be brought here, or if Jeep would develop a larger three-row, maybe based on Durango, for our market. Related Video: Featured Gallery Jeep Grand Commander View 10 Photos Image Credit: Jeep Beijing Motor Show Jeep Crossover SUV

YouTube tallies votes for this year's top five Super Bowl spots [w/video]

When we asked you to tell us which of this year's 16 car-themed Super Bowl commercials you liked best, you chose the Farmer commercial from Chrysler Group, advertising the Ram trucks, over Audi's Prom commercial in second place. Turns out the voters in YouTube's Ad Blitz poll agreed, voting the same commercial to the number one spot from among the field commercials in every category.
From there, however, they went in a totally different direction. Budweiser's The Clydesdales spot came second, Samsung's The Next Big Thing took third. The Jeep Whole Again ad scored fourth in the YouTube poll, fifth in our poll of auto commercials, and the Hyundai Team spot got fifth from the YouTubers, but ninth in our poll.
The voting results don't match up with the viewing numbers, though - while Farmer has more than 13 million views, The Next Big Thing is well beyond 21 million. You can read the press release below and see all five spots, lined up for you, one more time.