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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.

Dodge bringing revamped Challenger, Charger to Big Apple

The 2014 New York Auto Show will be a big one for Dodge, as the brand has announced that refreshed versions of the 2015 Challenger and 2015 Charger will debut at the show. This is a particularly big deal for the two-door Challenger which, visually, has remained unchanged since is burst back onto the scene in 2008 and helped reignite the muscle car wars.
As a sort of hint, this announcement was accompanied by the picture you see above - the Super Bee logo in the Challenger's new instrument cluster. According to Dodge, the New York debut of a new "powertrain combination" - possibly with the high-output Hellcat V8 - will leave enthusiasts "abuzz."
As for the Charger, Dodge is promising a full redesign that should be a significant departure from the blunt, angry looks of the current model. At this point, there's no indication that the Challenger's new powertrain could be fitted to the Charger, although considering how mechanically similar these two vehicles have been, it doesn't seem outside the realm of possibility.

2021 Dodge Charger SRT Hellcat Redeye Widebody: Bring your friends on a 797-hp thrill ride

For a couple years now, if you wanted the ultimate in Dodge performance, your only option was the Dodge Challenger SRT Hellcat Redeye. The 797-horsepower engine was exclusive to it and its widened body, and if you needed four-doors, you were out of luck. But following the addition of a widebody Charger, the company has finally seen fit to create the 2021 Dodge Charger SRT Hellcat Redeye, complete with the monster Hemi. Unsurprisingly, the addition of 90 extra horsepower makes the Charger Redeye significantly quicker than the standard Hellcat. On a 2.1-mile road course Dodge tested at, the Redeye lapped 1.2 seconds faster than the regular car. The Redeye also finishes the quarter-mile in 10.6 seconds, close to 0.4 second faster than the standard Hellcat Widebody. Top speed also increases from 196 mph to 203 mph. Visually, there are a few subtle cues that distinguish the Redeye from the Hellcat Widebody. It of course gets Hellcat badges with red eyes, but it also gets a unique hood. The hood, in combination with the Widebody front fascia and a special air intake opening near the wheel liner give the Redeye the maximum amount of air flow to the engine bay of any Charger variant. While the big news is the Redeye coming to the Charger, prospective Hellcat buyers have some good news, too. All 2021 Hellcats pick up 10 horsepower for 717 total. This matches the limited-edition Charger Hellcat Widebody Daytona 50th Anniversary Edition. So even if you can't reach a Redeye, the regular Hellcat will be even more potent than before. Pricing for the new Redeye has not yet been announced. Dealers will be able to start ordering 2021 Chargers this fall, so we should have pricing around that time. Cars should begin arriving at lots in early 2021. Related Video: