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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.

General Patton's Dodge WC57 Command Car headed to auction

Indiana will see some excellent vintage metal on several auction blocks this summer. Mecum Auctions has the 1965 Pontiac GeeTO Tiger and 1963 Shelby Cobra that was a Ford demonstrator planned for in Indiana in late June. Two weeks before that, and as noted by Carscoops, Worldwide Auctioneers will offer what could have been Gen. George S. Patton’s Dodge WC57 Command Car. We say "could have been" because although the WC57 came out of the National Military History Center in Auburn, Indiana, a few years ago and is fitted with the modifications Patton made to his personal WC57, the auction house doesn't have paperwork explicitly linking Patton to this car, and there are other replicas of Patton Command Cars out there. That could help explain why when RM Auctions put this WC57 up for sale in 2017 with a pre-sale estimate of $100,000 to $150,000, the vehicle failed to make the $60,000 reserve. Dodge had been making vehicles for the U.S. military since before World War I, most of them based on civilian models. Before the U.S. entered World War II, Dodge turned its civilian TC pickup into the 1940 VC-1 military truck. The VC-1 quickly evolved into the WC range, the WC57 Command and Reconnaissance Weapons Carrier riding on a three-quarter-ton, 4x4 chassis and weighing almost 5,400 pounds. Built from 1942 to 1945, they were powered by Dodge's T214 side-valve, 230-cubic-inch inline-six with 92 horsepower.   This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. General PattonÂ’s Dodge WC-57 Command Car - Offered Without Reserve The WC57 was simple, reliable, capable, and at the end of the war, was part of the inspiration for the Dodge Power Wagon. The story is that soldiers returning from active duty badgered Dodge for a civilian version of the indefatigable WC warhorse, so Dodge responded with the postwar's most hardcore pickup in 1946. The open-topped WC57 rig was also popular with U.S. Army officers, and because of that, it was popular target practice for German infantry and Luftwaffe pilots. So Patton, before heading to France in 1944 with the Third Army, had the motor pool in Cheltenham, England, modify his WC57. Mechanics added an armor flap to shield the radiator, half-inch armor plate under the floor, and a Browning M2 .50-caliber machine gun for fending off aerial attacks. A second, drop-down tailgate provided extra space and covered tool storage.

Dodge Demon priced at $84,995, or almost 20 grand more than a Hellcat

Ridiculousness has a price, and it is $84,995. That is the admission fee for the 2018 Dodge Challenger SRT Demon, or as most people call it: The Demon. The number includes a $1,700 gas guzzler tax and $1,095 destination fee. It does not include a number of options, may of which cost a dollar. Of those $1 options, a front passenger seat and rear seats are but two. Which is more of a reminder that, yes, Dodge will sell you car with only one seat if you want it that way. The other big $1 option is the Demon Crate, which includes skinny front tires for the drag strip, an impact wrench and jack, and a performance powertrain control module that bumps the power up to 840 hp on race gas. Dodge says the true value of the crate is $6,140. Don't let that fool you, as chances are they're just baking that cost in the $19,705 increase from the Challenger Hellcat. Did we mention you can get a sunroof. Yes, you can get a sunroof, for $4,995. Surely one of the 3,300 Demon buyers (3,000 in the US, 300 in Canada) will take pride in checking every option box. For posterity, here's the entire list verbatim from Dodge's press release: Demon Crate ($1): Exclusive Demon Crate offers components that unleash the car's 840 horsepower, 770 lb.-ft. of torque and full potential at the drag strip and is personalized with the buyer's name, VIN and serial number. The Demon Crate and the performance parts it holds are valued at $6,140, but Challenger SRT Demon owners can buy the entire package for $1.