2012 Jeep Wrangler Unlimited Sport Sport Utility 4-door 3.6l 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.

New Jeep Wrangler caught nearly uncovered

Finally, after months of seeing Wrangler prototypes carefully covered up, we get a look at some prototypes with the bare minimum of camouflage. Starting from the front, the fascia looks just as it did in previously leaked images. In contrast to the outgoing model, the trademark grille slots are now taller, stretching nearly to the top of the grille surround. The headlights also intersect with the grille slots, resulting in slightly pinched slots at either end. Aside from the grille, we can get a clear view of the new horizontal, fender-mounted turn signals and the traditional exposed hood latches. Moving along the SUV, we find hinges at the base of the windshield, which seems to confirm that you'll still be able to fold it down for maximum wind exposure. And, as we've seen before, the doors have exposed hinges that indicate the doors can come off, too. We can also see that the Wrangler will be offered with both contrasting black plastic fender flares, and with body-colored versions. But unlike past models, the body-colored examples aren't completely painted, leaving a black strip along the edges. Interestingly, the fender vents seen on another fully exposed example of the Wrangler don't appear to be present on these prototypes. They could be covered, or they may be an optional appearance item. At the back, we now get to see the Wrangler's new taillights, which are LED units with an I-beam shape. The exposed gas filler cap is now gone, in favor of a permanently attached filler door. Both the license plate mount and rear window wiper have been moved, too. The license plate now mounts to the bumper, and the rear wiper hides at the base of the rear window behind the spare tire. The rear bumper also gets some red lenses that could simply be reflectors, or possibly rear fog lights. As previously reported, the new Jeep Wrangler is expected to make its debut at this year's LA auto show, with the first deliveries arriving to dealers not long after. It will be available with either a four-cylinder or V6 at launch, with a diesel coming later, and the truck sometime after that. Other new features to the Wrangler could include a roof with power sliding panels, and full-time four-wheel drive. Related Video:

Jeep to stop using bad Takata airbag inflators next week

FCA is gradually ceasing to produce vehicles equipped with Takata airbag inflaters found to be inherently faulty. These airbags, which lack a certain drying agent, have been linked with dangerous premature ruptures. According to FCA, the only vehicle still in production with the named airbag is the 2016 Jeep Wrangler, and in this case they are passenger-side airbags. Fiat Chrysler says it isn't aware of any incidents involving these air bag inflaters in Jeeps, but amidst concerns that vehicles with failure-prone airbags are still being marketed to customers, North American-market 2016 Wranglers will cease to be equipped with them starting next week. As per FCA's statement, global production is expected to end by mid-September. In addition to Toledo, Ohio, the Wrangler is produced in Egypt. FCA isn't going to sell the cars with the deemed-faulty airbags without disclosing the fact to the customers: anyone buying a 2016 Wrangler will be notified that the vehicle will most likely be subject to a recall in the future, even if there is not currently a recall announced for them. NHTSA has specified a "Coordinated Remedy Program" recall schedule for the coming years, and the airbag inflaters will degrade over a time frame of several years, when subjected to a humid environment. Related Video: News Source: Fiat Chrysler Automobiles, The Wall Street JournalImage Credit: Julien Amado / Autoblog Quebec Plants/Manufacturing Recalls Chrysler Jeep Ownership Safety Takata airbag recall