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266,000 Ram pickups recalled for side-curtain airbag issue

Stellantis is voluntarily recalling an estimated 212,373 Ram pickups in the U.S., another 49,334 in Canada and Mexico, and a final 4,540 trucks in other markets over an issue with the side-curtain airbag inflators. During the manufacturing process, moisture could have found its way into the inflators. The moisture could cause the inflator to rupture and eject debris into the pickup cabin, even without an incident that deploys the side-curtain airbags. The OEM says it knows of one rupture and no injuries. Stellantis said it will let owners know when they can bring their vehicles in for service free of charge, the fix being replacement of the side-curtain airbag. The trucks at issue were all produced between the 2015 and 2020 model years. They are the Ram 1500 Classic, and Ram 2500 and 3500 pickup and chassis cabs. Some inflators sold as replacement parts are also implicated. The current-generation Ram pickup launched for the 2019 model year isn't affected.  The automaker's statement included the line, "The inflators were produced by a supplier implicated in a similar recall by another auto maker." This could refer to GM's July recall of 400,000 Chevrolet Silverado and GMC Sierra pickups from the 2015 and 2016 model years. The inflators came from Joyson Safety Systems, the company that bought Takata's assets in 2018 when Takata went bankrupt, and were produced in Mexico. Joyson appears to still be suffering indigestion from that purchase, the company announcing the discovery of falsified seat belt testing data from the Takata era just two months ago. The problem ingredient in Takata inflators was identified as ammonium nitrate, a volatile compound designed to explode to inflate airbags in a crash. The chemical reacts poorly to moisture and humidity, and when exposed, can explode with excessive force, blowing apart the metal container it's stored in and sending shrapnel into the cabin. Stellantis, though, said the airbags involved in this recall don't contain ammonium nitrate.   Ram owners with questions can call the Stellantis help line at 1-800-853-1403. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The Best Midsize Pickup: Ranger vs Gladiator vs Tacoma vs Colorado

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.

EV cost burden pushing automakers to their limits, says Stellantis' CEO Tavares

DETROIT — Stellantis CEO Carlos Tavares said external pressure on automakers to quickly shift to electric vehicles potentially threatens jobs and vehicle quality as producers struggle with EVs' higher costs. Governments and investors want car manufacturers to speed up the transition to electric vehicles, but the costs are "beyond the limits" of what the auto industry can sustain, Tavares said in an interview at the Reuters Next conference released Wednesday. "What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle," he said. "There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay." Automakers could charge higher prices and sell fewer cars, or accept lower profit margins, Tavares said. Those paths both lead to cutbacks. Union leaders in Europe and North America have warned tens of thousands of jobs could be lost. Automakers need time for testing and ensuring that new technology will work, Tavares said. Pushing to speed that process up "is just going to be counter productive. It will lead to quality problems. It will lead to all sorts of problems," he said. Tavares said Stellantis is aiming to avoid cuts by boosting productivity at a pace far faster than industry norm. "Over the next five years we have to digest 10% productivity a year ... in an industry which is used to delivering 2 to 3% productivity" improvement, he said. "The future will tell us who is going to be able to digest this, and who will fail," Tavares said. "We are putting the industry on the limits." Electric vehicle costs are expected to fall, and analysts project that battery electric vehicles and combustion vehicles could reach cost parity during the second half of this decade. Like other automakers that earn profits from combustion vehicles, Stellantis is under pressure from both establishment automakers such as GM, Ford, VW and Hyundai, as well as start-ups such as Tesla and Rivian. The latter electric vehicle companies are far smaller in terms of vehicle sales and employment. But investors have given Tesla and Rivian higher market valuations than the owner of the highly profitable Jeep and Ram brands. That investor pressure is compounded by government policies aimed at cutting greenhouse gas emissions. The European Union, California and other jurisdictions have set goals to end sales of combustion vehicles by 2035.