2002 Dodge Freightliner Sprinter Van on 2040-cars

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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.

FCA recalling Chrysler and Dodge minivans, Dodge Nitro SUVs for faulty airbag covers

Fiat Chrysler Automobiles said on Friday it would recall about 925,239 of its older model vehicles in the United States to replace airbag covers on their steering wheels after 14 potentially related injuries. The recall is limited to 2007-2011 Dodge Nitro SUVs, 2008-2010 Chrysler Town & Country and Dodge Grand Caravan minivans, the Italian-American automaker said. The move follows an FCA investigation that found these vehicles were equipped with certain clips that may loosen and disengage over time, and in case of a driver-side airbag deployment the clips could act as projectiles. Fiat Chrysler said none of the potential injuries involved occupants of front-passenger or rear seats and that the airbags were not supplied by Takata. Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel. Related Video:   Recalls Chrysler Dodge Minivan/Van SUV

Last call for Chrysler 300C, Dodge Charger, Challenger: Get your orders in by July 31

We’ve known for a while that the Dodge Challenger and Charger, along with the Chrysler 300C, were going away, and we now have a production end date for the long-running trio of big cars. Earlier this week, we learned that the order books for all three will close at the end of July, ahead of closing production at the end of the year. The 300C has been around since the 2005 model year and has been on sale relatively unchanged since 2011. Chrysler has updated the powertrain choices and technology over the years, but the car we see on sale today is nearly identical to the car we first saw when President George W. Bush was in office. Though it shares a platform and some underlying engineering with the Dodge Charger and Challenger, Chrysler hasnÂ’t gone to the lengths that Dodge did to give the 300C a proper sendoff. Dodge pulled out all the stops with its large cars, offering a series of “Last Call” models highlighting the carsÂ’ power and history. That said, Chrysler did release a limited-production 300C for 2023 that offers a 6.4-liter Hemi V8. ItÂ’s held to 2,000 units and doesnÂ’t have the swagger that DodgeÂ’s cars bring, but there are a few reasons to be excited about the final 300C. With 485 horsepower and 475 pounds of torque on tap, the car can reach 60 from a standstill in 4.3 seconds and run the quarter mile in 12.4 seconds. Those are serious numbers for any car, let alone one that feels like a Barcalounger on wheels. Other upgrades for the final 300C include a 3.09 limited-slip differential, an active exhaust system, and active suspension. If the 300C speaks to you in a way that other rolling sofas donÂ’t, itÂ’s likely too late to grab a limited-production car, but Chrysler is offering the standard 300 — for now.