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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.

Electric pickups compared: 2025 Ram 1500 REV specs vs. Silverado EV, F-150 Lightning

Now that the 2025 Ram 1500 REV has been revealed, along with its most important specifications, we now have information on all of the mainline Big 3 electric full-size pickup trucks. So it's time to see how the numbers stack up, because trucks are all about numbers. We'll see how the Ram compares to the power, battery capacity, payload, towing and other features of the 2024 Chevy Silverado EV and the 2024 Ford F-150 Lightning. Power and torque The Ram has just one powertrain option. It features two electric motors making 654 horsepower and 620 pound-feet. That gives it the most powerful standard powertrain, if not the most torque, as the Chevy Silverado EV has 510 horsepower and 615 pound-feet of torque, while the F-150 Lighting has 452 horsepower and 775 pound-feet. But the Chevy and Ford each have upgraded motor combinations. The Silverado is the most potent with 754 horsepower and 785 pound-feet, and the F-150 has 580 horsepower and 775 pound-feet. The GMC Sierra EV will also be available with this more powerful pair of motors, and most of its specifications will be the same as the Silverado. There are a couple of exceptions which we'll note when they come up. All three trucks come standard with dual motors and all-wheel drive, regardless of output, battery or trim level. They're all available with locking rear differentials, too. Ford F-150 Lightning front low View 48 Photos Battery, range and charging The Ram is packing some serious packs of batteries. The standard model gets 168 kWh and an estimated range of 350 miles. And the optional 229-kWh pack is estimated to deliver 500 miles of range. That's more capacity and range than the others. It also boasts an 800-volt battery system that allows for close to 350-kW charging. The Ford F-150 Lightning has a base battery of 98 kWh with a range around 230 miles. Optional is a 131-kWh pack with between 300 and 330 miles of range, depending on other vehicle specifications. It's the slowest charger, only allowing 150-kW charging maximum. The Silverado EV's battery specs are a bit nebulous. At launch, it will only be available with one battery pack option that GM claims will provide around 400 miles of range. The company didn't give an exact capacity, though. We would guess its size falls between the Ram's 168 and 229 kWh packs. A smaller battery pack will be offered later, with a shorter but unknown range. The Silverado can use 350-kW fast charging like the Ram.

Fiat Chrysler's profit boosted by Ram and Jeep in North America

MILAN/DETROIT — Fiat Chrysler took the market by surprise by sticking to its full-year profit guidance on Wednesday after a strong performance from its Ram pickup truck in North America helped it defy an industry slowdown. Chief Executive Mike Manley, in FCA's first earnings release since a failed attempt to merge with France's Renault, also left the door open to that or other deals. "We are open to opportunity," Manley said on a call with analysts. "I have no doubt why there still would be interest in it," he added, when pressed on what it would take to revive talks with Renault. Manley declined to comment further. FCA last month abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world's third-biggest automaker. Manley said a merger was not a must-have and Fiat Chrysler's business plan was strong. The company said it remained confident its adjusted earnings before interest and tax (EBIT) would top last year's 6.7 billion euros ($7.5 billion). Given disappointing forecasts from other automakers this earnings season, FCA's confirmation of the outlook sent Milan-listed shares in the Italian-American automaker, whose other brands include Jeep, up over 4%. A broad-based auto sales downturn has rattled the sector, forcing FCA's competitors — including Renault, Daimler and Aston Martin — to cut their sales forecasts after second-quarter results, while U.S. carmaker Ford gave a weaker-than-expected 2019 profit outlook. Japan's Nissan, a long-term partner of Renault, said it would cut 12,500 jobs by 2023 after its earnings collapsed. In the second quarter FCA's adjusted EBIT totaled 1.52 billion euros, versus analysts' expectations of 1.43 billion euros, according to a Reuters poll. FCA's U.S. shipments were down 12% in the second quarter but the group said that the successful performance of its Ram brand resulted in an enhanced share of the large pickup truck market of 27.9%, up 7 percentage points from last year. Adjusted EBIT margin in North America rose to 8.9% from 6.5% in the first quarter, thanks to strong demand for the heavy-duty Ram and the new Jeep Gladiator pickup. Chief Financial Officer Richard Palmer also said FCA expected to report up to 10% margins in the region in both the third and fourth quarters.