2008 Jeep Wrangler X 4x4 4dr Suv on 2040-cars

Auto blog

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.

In Michigan, car hackers could face life imprisonment

Car hackers may not want to mess with vehicles in and around the Motor City. A pair of Michigan lawmakers introduced legislation Thursday that would punish anyone who infiltrates a vehicle's electronic systems with penalties as harsh as life imprisonment. Senate bill 927 says that "a person shall not intentionally access or cause access to be made to an electronic system of a motor vehicle to willfully destroy, damage, impair, alter or gain unauthorized control of the motor vehicle." Offenders will be deemed guilty of a felony, and may be imprisoned for any number of years up to life in prison. The proposed legislation is one of the first attempts nationally to address the consequences for car hacking, which has become a top concern throughout the auto industry. Critics have accused executives of being slow to respond to the threats, which were first known as long as six years ago but gained attention last July when a pair of researchers remotely controlled a Jeep Cherokee. In January, the industry established an Information Sharing and Analysis Center to collectively evaluate security measures and counter breaches. But the Michigan bill isn't noteworthy only because of the life penalty prescribed; it's noteworthy for what's missing in its details. Language in the bill doesn't delineate between independent cyber-security researchers and criminals who intend to inflict harm or havoc. Under its provisions, it's possible Charlie Miller, pictured below, and Chris Valasek, the researchers who demonstrated last summer that the Cherokee could be remotely commandeered and controlled, could face life behind bars. Provisions of the legislation that prevent a person from "altering" the motor vehicle could ensnare car enthusiasts or gearheads who tinker with electronic systems to boost performance, increase fuel efficiency or add aftermarket features. In that context, Senate Bill 927 seems like the latest measure in a running feud between independent researchers, gearheads and big automakers. Car companies don't like third parties poking around their electronic systems and would prefer the researchers not reveal security weaknesses. Researchers, on the other hand, say many carmakers are either slow to fix or unwilling to repair security holes unless they're able to publish their findings.

Cadillac CTS-V and Suzuki e-Survivor | Autoblog Podcast #527

This week, Editor-in-Chief Greg Migliore is joined by General Manager Adam Morath. They discuss driving the Cadillac CTS-V and talk about the Suzuki e-Survivor concept. Other news includes possible Jaguar Land Rover acquisitions, the Jeep Grand Cherokee Trackhawk and the Autoblog Car Finder. Autoblog Podcast #527 Your browser does not support the audio element. Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Topics and stories we mention Rundown Jaguar Land Rover acquisitions? Suzuki e-Survivor concept Tesla Model 3 Autoblog Car Finder tool Jeep Grand Cherokee Trackhawk Cadillac CTS-V What we've been driving: Jaguar F-Pace Ken Block's "Climbkhana" Spend my money Feedback Email – Podcast at Autoblog dot com Review the show on iTunes Green Podcasts Cadillac Jaguar Jeep Suzuki Electric Performance Videos Sedan jaguar land rover