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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 uses Super Bowl spots to honor troops, farmers

How do you follow up such revered and successful ads as Chrysler's last two Super Bowl commercials? Imported from Detroit and Halftime in America should be given credit for giving the automaker's public perception a complete overhaul after its rescue from the brink with taxpayer money. What next, then?
We just found out during Super Bowl XLVII. This year Chrysler went with two commercials, one for Jeep and the other Ram. The two-minute-long Jeep commercial, called Whole Again, is narrated by Oprah Winfrey and presented as an open letter to the service men and women of America, simply expressing admiration for what they do - poignant message coming from a company whose history is so entwined with that of the military's.
The Ram commercial, called Farmer, honors the agricultural backbone of this country. Its soundtrack is a speech entitled "So God Made a Farmer" given by the famous radio broadcaster Paul Harvey, which plays over a slideshow of original photography commissioned by Ram. The images, of course, focus on farming and the people who do it for a living, and there's a few Ram trucks in there, as well.

266,000 Ram pickups recalled for side-curtain airbag issue

Stellantis is voluntarily recalling an estimated 212,373 Ram pickups in the U.S., another 49,334 in Canada and Mexico, and a final 4,540 trucks in other markets over an issue with the side-curtain airbag inflators. During the manufacturing process, moisture could have found its way into the inflators. The moisture could cause the inflator to rupture and eject debris into the pickup cabin, even without an incident that deploys the side-curtain airbags. The OEM says it knows of one rupture and no injuries. Stellantis said it will let owners know when they can bring their vehicles in for service free of charge, the fix being replacement of the side-curtain airbag. The trucks at issue were all produced between the 2015 and 2020 model years. They are the Ram 1500 Classic, and Ram 2500 and 3500 pickup and chassis cabs. Some inflators sold as replacement parts are also implicated. The current-generation Ram pickup launched for the 2019 model year isn't affected.  The automaker's statement included the line, "The inflators were produced by a supplier implicated in a similar recall by another auto maker." This could refer to GM's July recall of 400,000 Chevrolet Silverado and GMC Sierra pickups from the 2015 and 2016 model years. The inflators came from Joyson Safety Systems, the company that bought Takata's assets in 2018 when Takata went bankrupt, and were produced in Mexico. Joyson appears to still be suffering indigestion from that purchase, the company announcing the discovery of falsified seat belt testing data from the Takata era just two months ago. The problem ingredient in Takata inflators was identified as ammonium nitrate, a volatile compound designed to explode to inflate airbags in a crash. The chemical reacts poorly to moisture and humidity, and when exposed, can explode with excessive force, blowing apart the metal container it's stored in and sending shrapnel into the cabin. Stellantis, though, said the airbags involved in this recall don't contain ammonium nitrate.   Ram owners with questions can call the Stellantis help line at 1-800-853-1403. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The Best Midsize Pickup: Ranger vs Gladiator vs Tacoma vs Colorado