1957 Jeep Forward Control Fc-150 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.

Best plug-in hybrid cars, SUVs and minivans for 2024

We’re fans of electric vehicles, but they have their shortcomings. TheyÂ’re not available in as wide of a range of body styles as gas-powered cars, and theyÂ’re still limited by range and charging infrastructure. Plug-in hybrids (PHEVs) offer a great compromise, though, allowing for all-electric driving, but also having a gas engine for when you need more power or to travel long distances. Choosing a plug-in hybrid vehicle also allows more options; for instance, you canÂ’t get an all-electric minivan in the U.S. Â… yet. But with those extra PHEV offerings, it might be difficult to know where to start shopping. WeÂ’ve narrowed it down a bit, bringing you the best plug-in hybrids for 2024, as voted on by Autoblog staff, in various segments to help you pick a great PHEV based on your budget and needs. Best luxury plug-in hybrid large/midsize SUV: Volvo XC90 Recharge Despite showing its age, the Volvo XC90 remains an excellent three-row crossover in terms of design, comfort and safety, and the XC90 Recharge plug-in hybrid only improves the formula with both power and efficiency. Interestingly, with the gas motor powering the front axle and the e-motor powering the rear, the XC90 Recharge operates as a rear-wheel-drive car when only using electric power, and front-wheel-drive when only using gas. The powertrain is good for 455 horsepower and 523 pound-feet of torque, with a 5-second 0-60 time. It can travel 32 miles on electricity alone. Runner-up: Porsche Cayenne E-Hybrid   Best mainstream plug-in hybrid large/midsize SUV: Jeep Grand Cherokee 4xe Do you want an American PHEV with style, refinement and off-road capability? The Jeep Grand Cherokee 4xe combines all that with a turbocharged 2.0-liter and electric motor good for 375 horsepower and 470 pound-feet of torque, as well as an electric range of 26 miles. That means you can enjoy your favorite trails in near silence and make fewer trips to the gas pump on the way there. Runner-up: Kia Sorento Plug In-Hybrid   Best luxury plug-in hybrid compact/subcompact SUV: Volvo XC60 Recharge Volvo borrows the formula from the XC90 and places it in a smaller package to get the XC60 Recharge. It has the same 455 horsepower and 523 pound-feet of torque, but it drops the 0-60 time to 4.5 seconds while offering 35 miles of electric range. You can even pony up for the Polestar Engineered trim to get the Ohlins suspension, Brembo brakes, 21-inch forged wheels and unique styling.

2014 North American Car and Truck/Utility of the Year finalists announced [w/poll]

The 2014 North American International Auto Show is right around the corner, which means it's high time we found out which cars and trucks would be finalists for the prestigious North American Car and Truck/Utility of the Year awards.
The finalists - three in cars and three in three trucks/utilities - are dominated by American brands, with two-thirds of the finalists hailing from either General Motors or Chrysler (don't worry Ford, there's always next year), while outliers from Mazda and Acura can be found in each contest. Here now is the list of finalists for the big prizes:
2014 North American Car of the Year: