2024 Ram 2500 Tradesman 4x4 Crew Cab on 2040-cars

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China's Great Wall confirms its interest — in Jeep, or all of FCA

HONG KONG/SHANGHAI — Chinese automaker Great Wall Motor reiterated its interest in Fiat Chrysler Automobiles NV on Tuesday, but said it had not held talks or signed a deal with executives at the Italian-American automaker. China's largest sport utility vehicle manufacturer made a direct overture to Fiat Chrysler on Monday, with an official saying the company was interested in all or part of FCA, owner of the Jeep and Ram truck brands. Automotive News first reported the news, quoting Great Wall Motor President Wang Fengying as saying she planned to contact FCA to discuss acquiring the Jeep brand specifically. Those comments sent FCA shares higher but also raised questions over the ability of China's seventh-largest automaker by sales to buy larger Western rival FCA, or even Jeep, which some analysts value at as much as one-and-a-half times FCA. Great Wall sought to dampen speculation on Tuesday. It confirmed it had studied Fiat Chrysler, but said there was "no concrete progress so far" and "substantial uncertainty" over whether it would eventually bid. "The company has not built any relationship with the directors of FCA nor has the company entered into any discussion or signed any agreements with any officer of FCA so far," the company said in an English-language stock exchange filing. It did not give further detail. Fiat Chrysler stock dipped on the statement on Tuesday. Great Wall said trading in its Shanghai-listed shares would resume on Wednesday after having been suspended. Fiat Chrysler declined to comment on Great Wall's statement. On Monday, it said it had not been approached and was fully committed to implementing its current business plan. FLUSHING OUT RIVALS? Great Wall Motor, which was early to spot China's love of SUVs, had revenue of $14.8 billion last year and sold 1.07 million vehicles - but that compares with FCA's 2016 revenue of 111 billion euros ($130.6 billion). Analysts said Great Wall would need to raise both debt and equity to complete any deal, meaning its chairman Wei Jianjun could lose majority control. One possible scenario, according to analysts at Jefferies, would see Wei keeping a roughly 30 percent stake, while Great Wall would raise $10-$14 billion in debt and $10 billion in equity - hefty for a group currently worth just $16 billion. Ultimately, politics could be the clincher.

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.

2016 Ram 3500 Heavy Duty now offers 900 lb-ft of torque

After last year's bump to a massive 865 lb-ft of torque for its 2015 3500 Heavy Duty pickup, Ram certainly isn't taking a rest. The model already offers the best towing capacity and most torque in its class, but both figures are growing even higher for the 2016 model year. Now, customers that really need some grunt can order the Cummins 6.7-liter inline-six diesel in the 3500 with a staggering 900 pound-feet of torque and 385 horsepower. Ram claims that this huge figure is the most torque ever available in a mass production vehicle, and it tops the 2015 model by a healthy 35 lb-ft. The added grunt comes thanks to adjustments to the fuel delivery and the turbo's boost, and to better handle things, the rear axle gear now is held with 16 bolts, rather than 12. The tweaks also push the tow rating to an SAE J2807-certified 31,210 pounds, which is absolutely monumental. While not available with the 900 lb-ft version of the Cummins, the Ram 2500 also sees a tiny boost in its max tow rating. The trucks are now capable of hauling up to 17,980 lbs, versus 17,970 lbs last year. The 2016 Ram Heavy Duty trucks go into production in the third quarter and should start arriving at dealers during the fourth quarter of 2015. Prices for the 3500 start at $33,185 and $32,680 for the 2500, after the $1,195 destination charged, respectively. The company hasn't yet announced the cost for the 3500 with the 900 lb-ft Cummins diesel. 2016 Ram Heavy Duty Widens its Leadership Gap With a Triple-decker Presence: Best-in-class Power, Towing Capacity and Payload Capacity • 2016 Cummins 6.7-liter calibration hits a best-in-class 900 lb.-ft. of torque. The most torque ever offered in a mass-production vehicle • 2016 Ram 3500 crushes the competition with up to 31,210 pounds of SAE J2807-spec.