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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.

2020 Ram 1500 Review & Buying Guide | The class home run

The 2020 Ram 1500 is a home run, plain and simple. From the humble Tradesman to the opulent Limited and every flavor in-between, this thoughtfully designed and well-executed truck impresses like none other. It possesses the capability expected of a half-ton pickup and dimensions that pretty much match its competitors, but it consistently goes above and beyond what's expected. Its coil spring rear suspension provides superior ride, handling and trailer control. Its interior is a model of quality, functionality and aesthetics, with user-friendly technology to boot. The breadth of engine options may not match its Chevy and Ford rivals, but the four available are fully competitive with ample power, strong fuel economy and advanced engineering in the form of the eTorque mild-hybrid system. If you're looking for a truck and don't at least consider the Ram, you're doing yourself a disservice. What's new for 2020? The Ram 1500 regains its popular EcoDiesel engine for 2020, although this time around, its main competitors offer similarly powered engines as well. Also new is a Night Edition available for Big Horn and Laramie that adds blacked out trim, badging and wheels (it looks pretty similar to the truck above). The Rebel also gets access to a similarly blacked out appearance package and can also now be equipped with the Safety Group of driver assistance technologies. There are also three new colors. 2019 Ram 1500 Interior View 56 Photos What's the interior and in-car technology like? It's easy to be smitten by the Ram 1500 in its fanciest Longhorn and Limited trim levels, which are bedecked in soft leather, special color schemes and unique styling elements like the Longhorn emblem literally branded into real wood trim. There are unique features like the huge vertically oriented touchscreen and the ventilated reclining back seat. It's easily the most luxurious pickup ever made. Crucially, however, we are actually more impressed by the basic Ram 1500 Tradesman and Big Horn trim levels. While the quality of plastics is typical for the segment (that goes for those ritzy Rams, too), the different textures and attractive design result in a cabin that looks and feels better than trucks that cost a comparable amount or more. For instance, the rich gray cloth upholstery in a Big Horn test truck contributed to a far more premium environment than the one found in a leather-lined 2019 Chevy Silverado. The Ram doesn't just impress aesthetically.

An inside look at Mopar's SEMA fleet

Mopar is heading to the SEMA show in Las Vegas with a fleet of customized vehicles that appeal to enthusiasts of all stripes. There's a Dodge Viper ACR concept that follows in the lineage of the supercar's great road racing past, and a custom Ram ProMaster that might just be the ultimate outdoor party machine.
We got an inside look at Mopar's cars that will be on display at the show, which also include a Dodge Challenger T/A concept, two crazy Jeeps and a Ram 2500 Outdoorsman that could change the way you camp. While these are some of our favorites, Mopar is bringing plenty to SEMA, so let us know your top choices in the comments section.