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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 Fiat Ducato Electric is the Ram ProMaster's EV cousin

As we all know, the Ram ProMaster has Italian roots. Despite featuring a 3.6-liter, 24-valve Chrysler Pentastar V6 with 280 horsepower, the ProMaster was born a humble Fiat Ducato over a decade ago, the Ducato's roots stretching far into the past. There was even been a rebadged Alfa Romeo version of the Ducato in the early '80s, so badge engineering isn't a strange concept when it comes to this line of vans. Nevertheless, the mother company has come up with a Ducato that's not propelled by the Pentastar or a European diesel engine: the 2020 Ducato facelift will come with a fully electric powertrain in Europe. The Ducato Electric is the first EV from Fiat Professional, the work vehicle division. Earlier, there have been natural-gas-powered versions, which continue to form a part of the model palette, but a BEV Ducato is unprecedented. Still, or perhaps for that reason, Fiat is taking small steps when electrifying its van lineup: The Ducato Electric will at first be made available to "major clients" via pilot projects, which means trusted Fiat customer fleets will function as beta testers for the van, most likely only in Europe. No technical details are available yet, either, making the Ducato something of a Mystery Machine. These fleets, some of which have already helped to develop the EV van, can pre-order the Ducato Electric this year with the vehicles delivered in 2020. Even if the van's availability has a touch of '90s EV uncertainty, Fiat says there's "no compromise" in the van's load-carrying capacity and performance. We also expect more information to trickle out in the near future, and given how handy a silent yet torquey van is in some use cases, perhaps the Ram version will also get officially electrified at some point. Aftermarket solutions, like the Maxwell RHEV, already exist. Disclaimer: Autoblog accepts vehicle loans from auto manufacturers with a tank of gas and sometimes insurance for the purpose of evaluation and editorial content. Like most of the auto news industry, we also sometimes accept travel, lodging and event access for vehicle drive and news coverage opportunities. Our opinions and criticism remain our own — we do not accept sponsored editorial.

2020 Ram 1500 EcoDiesel First Drive | To be continued …

DULUTH, Minn. — Ram gave us a new generation of its 1500 pickup for 2019, and weÂ’ve already had a lot of fun with it. WeÂ’ve driven the V6 and the Hemi V8 versions. WeÂ’ve tried it with and without the eTorque mild hybrid system. WeÂ’ve sampled the humble Tradesman, the rambunctious Rebel, the well-rounded Big Horn and Laramie, and the high-lux Limited. But now we get to sample one of the most anticipated updates, this one made for the 2020 Ram 1500 lineup: the third-generation EcoDiesel engine. With plenty of miles already spent with the new 1500 over the past year, we know the fresh generation of the Ram full-size pickup is already an overachiever. Its interior is class-leading, the ride is surprisingly comfortable, and the 1500Â’s handling is surprisingly agile for its size. So weÂ’ll focus on the heart of the matter: the new engine, starting out in a Rebel for a cruise around Duluth. Slated to go on sale later this year as a 2020 model, this is the third generation of the light-duty turbo-diesel engine, and it has undergone a significant  overhaul. The result is that this 3.0-liter V6 provides 260 horsepower at 3,600 rpm and an impressive (not to mention class-leading) 480 pound-feet of peak torque at 1,600 rpm. In addition, the EcoDiesel allows for up to 12,560 pounds of towing, and a 2,040-pound payload. If weÂ’re keeping score — as we know truck fans are — the Duramax diesel in the 2020 Chevy Silverado and GMC Sierra makes 277 hp (points to GM) and 460 lb-ft, with towing and payload yet to be announced. The Ford F-150 Power Stroke provides 250 hp and 440 lb-ft, with 11,400 pounds towing and 2,020 pounds of payload. Ram hasnÂ’t announced fuel economy yet, so the DuramaxÂ’s 23 mpg city and 33 mpg highway are the figures to beat, while the FordÂ’s gets up to 22 city and 30 highway in 2WD guise. Ram spokespeople wouldnÂ’t budge on providing fuel economy hints, but RamÂ’s U.S. marketing director Mike Koval promised the EcoDiesel would be “very competitive” here. To be continued Â… RamÂ’s new EcoDiesel aims to perform better in all the major areas consumers care about – power, fuel economy, and NVH. To help with all three, the new motor includes low-friction turbo bearings, lower-pressure exhaust gas recirculation, lighter pistons, and a 15-pound-lighter engine block. At idle, the EcoDiesel is muted, with a bassy patter typical of a diesel — no surprises there. Sitting still, the truck is very quiet.