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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.

Here's your chance to vote for the best-looking state police cruiser

Across the country, state police generally drive the same types of vehicles. Right now, the most common cruisers are Ford Explorers, Chevrolet Tahoes, and Dodge Chargers, with some exceptions sprinkled in. The differentiation comes through in the livery, which can range from simplistic badging to busy stripes. Each year, the American Association of State Troopers (AAST) holds a fun contest to determine which state has the coolest-looking cars, and 2019 voting has just opened. We discovered the contest after Motor1 posted about the Florida Highway Patrol's newest addition to its fleet, a Dodge Challenger R/T. The musclemobile is, without question, the coolest car in the competition, and it might have the best livery too. But that doesn't mean it's going to win, as contests like this often turn into hotbeds for chest-beating homers.  The AAST is posting results on Facebook, and as of July 17, 2019, Kentucky and Nebraska are blowing the rest of the states out of the water. Florida is in ninth place with 4,653 votes compared to first-place Kentucky's 14,699. New Jersey is in last place with only 107 votes. As the internet goes, this will likely be determined by how many times the contest is shared across social media.  The Challenger isn't the only eye candy, either. Not every state participated, but those that did came correct with the photography, including Nebraska posing its car in front of a freakin' tornado. Others staged their cars with helicopters in the background, some set the car in front of the gorgeous landscapes their states have to offer, and others posed with dogs. Because who doesn't love dogs? No matter which car wins, it's cool to see the various designs all in one place. Check out the gallery above and vote for your favorite on the AAST's survey. The survey will close on July 30, 2019.  

How Dodge is making sure dealers don't gouge Demon buyers

The Dodge Challenger SRT Demon is a ridiculous 840-horsepower, limited-production machine that we're sure many are eager to purchase. But, they're probably not excited at the prospect of the massive dealer markups that accompany rare, high-performance cars. Fortunately, Dodge is taking steps to make sure buyers aren't paying thousands of dollars extra to get a car early, and its main method is production priority. Dodge announced that cars purchased at or below the MSRP of $86,090 will be the first ones the company builds and delivers. If a dealer sells an allocated car for more than the sticker price, that car won't be built until the high-priority vehicles have been. Dodge will also ensure fair distribution of the 3,000 Demons it will build by limiting the number of orders a dealer can submit. Dealers will be allocated a certain number of cars, and the amount will be based on how many Challenger and Charger Hellcats the dealer has sold. This should also help prevent dealers from hoarding cars and slapping sky-high prices on them. Also, the fact that every Demon comes with a number plate with the buyers' name on it should help prevent dealers from buying cars for the lot to mark up. In addition to revealing these measures, Dodge announced that buyers will be able to submit an order for a Demon at an eligible dealer tomorrow, June 21. The only dealers eligible for Demon ordering are those that have sold more than one Hellcat in the past 12 months. Cars will begin production this summer, and deliveries will begin in the fall. Related Video: Featured Gallery 2018 Dodge Challenger SRT Demon: New York 2017 View 48 Photos Image Credit: Drew Phillips Dodge Car Buying Car Dealers Coupe Performance dodge demon