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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.

Chrysler celebrates 30 years of minivans with special editions

It's been known by many names: the Chrysler Town & Country, Dodge Caravan, Plymouth Voyager, Chrysler Voyager, Lancia Voyager, Volkswagen Routan, Ram Cargo Van... but the bottom line is that Chrysler's minivans have defined the segment for 30 years now. In fact, Chrysler says it has sold 13 million of them since 1983, helped along by the Chrysler Town & Country and Dodge Grand Caravan that accounted for nearly half of all minivans sold in the United States just last year. So to celebrate this three-decade milestone, the Auburn Hills auto has announced a pair of new special editions.
The 2014 Chrysler Town & Country 30th Anniversary Edition starts the Touring-L trim and includes such special touches as 17-inch wheels, unique badging, available Granite Crystal Pearl paint and an interior decked out in black Alcantara and Nappa leather, piano black trim and all the optional bells and whistles bundled in.
The 2014 Dodge Grand Caravan 30th Anniversary Edition, meanwhile, starts off with either the SE or SXT trims and also upgrades with 17-inch alloys as well as color-keyed mirrors and an interior with silver stitching, piano black trim, power everything, and of course, those special badges.

2020 Dodge Charger Widebody First Drive Review | Wider is better

NAPA VALLEY, Calif. - The guy in the white Silverado is already pissed off. He didn’t appreciate the first two times we blazed the rear tires of this 2020 Dodge Charger Widebody Hellcat through three gears, so we might as well do it again. ThatÂ’s right, sir, we are number one. Dodge seems to be playing by a different set of rules than the rest of the industry. While everyone else is worried about small crossovers and CAFE regulations, miles per gallon and electrification, autonomy and Elon Musk, the gang at Dodge is building AmericaÂ’s best muscle cars ever. Unapologetic, loud, in your face, tire-smoking muscle cars. Hellcats, Demons, Scat Packs and Redeyes. For 2020, the brandÂ’s list of Hemi-powered, rear-wheel-drive tire fryers now includes Widebody versions of the Charger Scat Pack and Hellcat, borrowing parts and inspiration from Widebody Challenger models, which began showing up for 2018. Dodge will also offer the 2020 Charger SRT Hellcat Widebody Daytona 50th Anniversary Edition to commemorate the 1969 Charger Daytona, a NASCAR homologation special with special aerodynamics for the superspeedways, including a massive rear wing and pointed beak with pop up headlamps. 2020 Dodge Charger SRT Hellcat Widebody Daytona 50th Anniversary View 14 Photos Just 501 will be sold, the same number of Daytonas Dodge had to build back in the day to satisfy Big Bill France. ItÂ’s available in four colors, and for 2020, itÂ’s the only Charger to wear B5 Blue, which was also originally offered in 1969. ItÂ’s a favorite color of classic Mopar muscle car enthusiasts. “Customers said we were giving too much love to the Challenger and ignoring the Charger,” said Jeff Strauss, the senior manager of Dodge/SRT Sales Operations. “ThatÂ’s not the case anymore.” The Widebody Package will be optional on the Charger Scat Pack (the white car in the above photos), but itÂ’s standard equipment on every 2020 Charger Hellcat and only adds about 30 pounds to the car. Just as on the Widebody Challenger, the plastic wheelwell flares widen the sedan's 3.5 inches, and their wider 20x11-inch forged aluminum wheels wear massive 305/35ZR20 tires front and rear. All-seasons are standard, but the cars are best on the available Pirelli Summer tires. There are also new front and rear fascias, rocker trim and a reshaped rear spoiler.  “My main goal was to make the cars look bad ass,” said Mark Trostle, FCAÂ’s head of performance, passenger and utility vehicle design.