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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.

2019 Jeep Cherokee Trailhawk Drivers' Notes Review | Capable, yet costly

The 2019 Jeep Cherokee Trailhawk is the refreshed version of a model that debuted back in 2014. It was a controversial model. Opinions were mixed on the styling — especially the front fascia — and some considered it an insult to the Cherokee name. Still, we liked that version so much we spent a full year with one. It proved to be a solid and reliable crossover that racked up more than 27,000 miles in just 12 months. This refreshed model occupies a strange place in Jeep's lineup. The Cherokee is positioned between both the Compass and Grand Cherokee, though it offers less interior space than either one of those. Pricing on the Cherokee falls right on top of those two models, too, meaning shoppers have to look hard to see what the best fit may be for them. The refreshed styling is certainly less polarizing, though it now means the Cherokee is less distinctive. This Trailhawk model is the midsize Cherokee's most rugged variant. It features a beefed-up suspension, more aggressive rubber, new front and rear bumpers, and an enhanced four-wheel drive system. Despite its car-based platform, the Cherokee Trailhawk is still plenty capable, but there is a price to pay for all that capability. Editor-in-chief Greg Migliore: I would not buy this Cherokee. With a sticker of more than 41 grand, it's too expensive. You can get pretty capable Wranglers and pretty nice Grand Cherokees for this price point. But, if you really love the Cherokee, this decked-out Trailhawk Elite is kinda awesome. You get all of the Trailhawk aesthetics and off-road prowess — you just have to pay for it. The Cherokee is in an interesting spot for Jeep. Even with the 2019 refresh, it's still fairly old, with most of the major elements dating to the 2014 relaunch of the Cherokee model. The Compass is arguably a better deal. It's newer in its lifecycle, starts at a lower price point and offers more cargo volume than the Cherokee. That being said, after rolling around town in the Cherokee for a couple nights, I'd probably buy one before I'd buy a Compass. It feels more substantial and more like a Jeep. I like the design. With the smoked grille and exterior trim, meaty wheels and flared fenders, this one looks especially sharp. Besides, the Compass' cargo volume advantage is less than 2 cubic feet. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

It lives! Our first glimpse of the Jeep Wrangler pickup

Okay, it's real now. We've been hearing rumors for years, and Jeep officials have confirmed a pickup will be added to the next-gen Wrangler lineup, but now we have our first photographic evidence of the long-awaited variant. It looks huge, and we're totally okay with that. These photos show a very-long-wheelbase Wrangler with a decent-size pickup bed. It looks to be about the same overall size as the AEV Brute Double Cab Wrangler pickup conversion, which itself is about the length of a Suburban. The bed appears to be in the five-foot range, maybe slightly shorter than the standard box of a half-ton truck. And those taillights, or at lest the covers on them, recall the shape of the lights on a Ram. These overhead shots also give a better look at the next Wrangler's evolved seven-slot grille. We see bigger spacing between thinner ribs, which would seem antithetical to the goal of improving the Wrangler's traditionally poor aerodynamics. It's possible FCA is using an air shutter to manage airflow, as it does on the Ram pickups and some other products. Related Gallery 2018 Jeep Wrangler Detailed Spy Photos View 18 Photos To recap what we know about the next Wrangler: It's expected to offer a gas V6 once again, as well as a turbocharged four-cylinder nicknamed Hurricane and an EcoDiesel-branded diesel engine. There have also been rumors of a hybrid powertrain. We don't yet know how many of those engines will make it to the pickup, but at least one gas engine and the diesel are safe bets. People love the idea of diesel Jeep pickups. We also know from interior spy photos that at least some of those new powertrains will use an eight-speed automatic. That, the modern engines, and improved aero will help the Wrangler be more efficient while still retaining much of its rugged, blocky look. The two- and four-door Wranglers are expected for the 2018 model year, with the pickup following for 2018 or 2019. Related Video: