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Dodge explains why it will build the Durango SRT Hellcat for only six months

Dodge will manufacture the 710-horsepower, Hellcat-powered Durango SRT only for approximately six months. The company explained that, while it won't stop production after building a pre-determined number of SUVs, it won't be able to extend the model's life cycle due to several manufacturing- and government-related hurdles. "The Durango SRT Hellcat is not limited, it's not serialized like what we did with the Challenger SRT Demon, but we're only building it for six months. With all of the changes we made in the plant to come back up to production post-COVID-19, with the sequencing and spacing in the plant, it's changed the numbers we can build," explained Tim Kuniskis, the head of Dodge, in an interview with enthusiast website Muscle Cars & Trucks. He added no one on his team knows precisely how many SUVs the Jefferson North factory on the outskirts of Detroit will put a Hellcat engine into. It largely depends on customer demand. Asked to provide an estimate, Kuniskis revealed he expects "less than 2,000" units will be made. They will all be 2021 models. In theory, Dodge could at least double that number by bringing the Durango SRT Hellcat back for the 2022 model year. It's not that simple in application, however, because the company won't be able to drop a supercharged, 6.2-liter V8 in its biggest SUV after 2021 without leaning on the wrong side of looming emissions regulations. "When we switch to the 2022 model year, there are new evaporative emission requirements that come in that the Hellcat engine does not meet in that platform," Kuniskis said. He also noted the Jefferson North factory will be busy retooling for production of the next-generation 2021 Jeep Grand Cherokee tentatively due out in 2020. Still speaking to Muscle Car & Trucks, Kuniskis clarified that the Hellcat-powered variants of the Charger and the Challenger will stick around in the foreseeable future; making them compliant with the upcoming emissions regulations is easier. And, he stressed the standard version of the Durango will carry on "completely interrupted." In other words: Act fast if you want a Durango SRT Hellcat. Dodge will begin taking orders in the fall of 2020, and production is scheduled to start in early 2021, with deliveries following shortly after. Pricing information hasn't been announced yet, but we expect its base price will be pegged in the vicinity of $90,000. Related Video:    

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.

Chrysler recalling 31k SUVs and vans

Chrysler is issuing recalls covering roughly 31,700 vehicles worldwide due to two separate problems. In both cases the company believes that most of the affected vehicles are either still on, or in transit to, dealer lots.
One recall covers roughly 10,700 Dodge Durango, Jeep Cherokee, Grand Cherokee and Grand Cherokee SRT models from the 2014 model year built between January 16 and April 17, 2014. The SUVs need a software update for the cruise control. It's possible that when the cruise is on and the driver presses on the throttle, the acceleration could last a second after the pedal is released or two seconds for the SRT. Afterward, they return to the speed originally set by the driver.
Chrysler says it isn't aware of any accidents, injuries or even reported incidents of this happening in the real world. Also, in all cases, if the driver presses on the brake, the cruise shuts off. The automaker believes that there are about 6,100 affected SUVs in the US, 950 in Canada, 425 in Mexico and 3,200 outside of North America. The software upgrade will be ready shortly, the company says.