Auto White 5.7 Limited Leather Navigation 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.

Huge, pricey trucks haul jobs and profits for the Detroit Three

DECATUR, Texas — Mickey McMaster is on his 12th pickup truck. The 61-year old farm equipment dealer in Decatur, Texas, two weeks ago treated himself to a 2019 GMC Denali for around $69,000 — a reward for long hours at work. "For me this is the Cadillac of trucks, it's a real luxury vehicle," McMaster said. "I've worked my way up to afford a truck like this and it shows that I've earned it." McMaster is the kind of customer General Motors Co is banking on as it plans to add 1,000 jobs at a plant in Flint, Michigan that will build a new generation of its largest pickups. Demand from Texas and other heartland states for big pick-ups is providing a lifeline to many workers the No. 1 U.S. automaker is laying off at plants elsewhere. The Detroit Three automakers and thousands of their U.S. workers are counting on customers like McMaster to keep buying bigger and more luxurious pickup trucks even if overall U.S. vehicle demand weakens this year, as most analysts predict. At Flint, GM will build a new generation of its heavy-duty Chevrolet Silverado and GMC Sierras, including luxury models that are some of the most profitable vehicles on the planet. GM, Ford Motor Co and Fiat Chrysler Automobiles NV's Ram division own the segment and are each doubling down with new or redesigned models launching this year. Sales of heavy-duty pickups in the United States have grown to more than 600,000 vehicles a year, up more than 20 percent since 2013, according to industry data. Prices for luxury models can easily top $70,000. GM on Tuesday celebrated the launch of a new generation of heavy-duty GMC and Chevrolet pickups at the assembly plant in Flint, Michigan, that is now building all such trucks for the company. At the same time that GM is laying off thousands of U.S. workers and planning to shutter five North American factories, Flint is hiring. The plant runs on three daily shifts, six days a week. As the new model's assembly system ramps up, the plant's capacity will increase by more than 25 percent, plant manager Mike Perez told Reuters. The Flint plant plans to add 1,000 workers, more than half of the 1,500 factory workers who have asked to transfer from plants GM has targeted for shutdown as part of CEO Mary Barra's restructuring plan. "We're bringing in 50 to 100 people every week," said Perez. Workers last week were still finishing the job of retooling the Flint factory to build the new heavy-duty trucks as part of a $1.5 billion investment project.

2020 Ram 1500 4x4 Suspension Deep Dive

What is taking everyone so long? That’s what I continually ask myself each time yet another all-new full-size pickup comes out with leaf spring rear suspension. Meanwhile, this 2020 Ram 1500 pickup represents a dozen years since coil spring rear suspension debuted when its prior generation was still being called a Dodge Ram 1500. Ford, Chevrolet, Toyota and Nissan introduced full redesigns of their pickups well after Ram proved that coil springs were the way to go, and yet leaf springs persist with the competition. IÂ’m not just popping off, here. In the 1990s I used to specialize in pickup truck suspension tuning for the Toyota Technical Center. Leaf springs are crude and loaded with compromises, but thatÂ’s all that truck design engineers ever gave us to work with. I was instantly all-in on RamÂ’s move to rear coils after the first few miles of driving a 2009 Ram 1500 pickup. Empty-bed ride comfort and handling were on another level, but it could still tow and haul. In fact, towing stability proved to be frankly incredible on the normally-treacherous downhill leg of my winding tow test grade. I fully expected everyone would copy it immediately. But they didnÂ’t. Others may have doubted the payload aspects. Ram never did. It soon doubled down and put coils under the back of its 2014 2500-series trucks. IÂ’ve developed other theories that seek to explain why no one followed their lead, but theyÂ’re not worth dredging up because I think the dominoes will soon begin to fall. Spy photos suggest that the next Toyota Tundra will switch to coils, and there are rumors that the Ford Raptor is going that way. ThatÂ’s not much of a stretch because the Ranger Raptor (only available outside the U.S.) already has coil spring rear suspension. WhatÂ’s the big deal? LetÂ’s take a look at the underside of a 2020 Ram 1500 Laramie 4x4, the second iteration of the Ram 1500 to employ coil spring rear suspension.   As it has for some time, the front end of the Ram 1500 rides on double wishbone suspension. The truck employs a high-mount upper wishbone (yellow arrow) that positions the upper ball joint up behind the tire sidewall instead of inside the wheelÂ’s barrel. This layout offers improved steering geometry and reduced stress in the upper ball joint, the upper control arm and its mounting points.   Coil-over spring/shock assemblies (green) come standard on all 2019+ (fifth-generation) Ram 1500 pickups whether they have four-wheel drive or not.