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Rivian R1T faces first competitive test in Rebelle Rally

Not long ago, the Rivian R1T electric pickup engaged in a very public bit of development testing as a support vehicle for "Long Way Up" — the trip Ewan McGregor and Charlie Boorman took on Harley Davidson LiveWire electric motorcycles from Ushuaia, Argentina, to Los Angeles. Next month, the R1T enters the realm of competition testing by competing in the Rebelle Rally, the all-female navigation rally held over 10 days and 1,243 miles in the sandy, rocky hinterlands of California and Nevada. The team behind the wheel will be pilot Emme Hall and navigator Rebecca Donaghe, who won last year's Rebelle Rally driving the then-new Rolls-Royce Cullinan. This is the first year in the Rebelle's five-year history that there will be a pure electric vehicle. A Mitsubishi Outlander PHEV will be the only other entrant flying the electrified flag. To welcome the battery-electric pickup and any other electrified runner that wants to join in the future, rally organizers have arranged a battery-powered mobile charging system to be deployed along the course. It's not clear which battery and motors the Rivian will house, but the top spec would provide a 180-kWh pack, up to 750 horsepower, and a range of more than 400 miles in normal conditions. The race will help Rivian hone the pickup's off-road credentials, the brand's creative director saying, "Adventures like the Rebelle Rally are what Rivian vehicles are made for." The Rebelle isn't a timed rally, so the point isn't to beat up the R1T with marathon stints on the throttle. As a navigation rally, competitors aim acquire points by hitting certain checkpoints, making strategy key. The ability to clamber over and through whatever's in the way won't hurt, either, a technique aided by the R1T's height-adjustable suspension that provides 14 inches of ground clearance on its tiptoes. The ability to do tank turns might also come in handy. The Rivian will prove itself by placing, or teach important lessons by falling out. All of this is a necessary step for a manufacturer selling "electric adventure vehicles." There are only two classes in the Rebelle Rally, Crossover and 4x4. Crossovers can be two-wheel drive or all-wheel drive, and can have unibody construction but no low-speed transfer case. The 4x4 class is traditional off-roaders with a low-speed transfer case, ranging from the Jeep Wrangler to the Range Rover.

2014 Ram Power Wagon is bigger and badder than ever [w/video]

"The 2014 Ram Power Wagon fills a need for those who travel into extreme terrain for rescue or recreation." - Reid Bigland
More, more, more. That's the philosophy behind the latest Ram Power Wagon. The extra-brawny, Ram 2500-based pickup is back for 2014, and naturally, it's even more extreme than its predecessor.

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.