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Autoblog Minute: Wrangler Pickup, Triumph Fined, Cherokee Production Moves

Autoblog senior editor Greg Migliore reports on highlights from the week in automotive news on this edition of Autoblog Minute. Show full video transcript text [00:00:00] Triumph Motorcycles in violation of the Safety Act, Jeep looks to adjust its vehicle production strategy, and a Wrangler pickup may soon be be produced in Toledo. I'm senior editor Greg Migliore, and this is your Autoblog Minute Weekly Recap. Triumph Motorcycles was hit with a $2.9-million fine because of a failure to submit safety documents to NHTSA in a timely fashion. An investigation of 1,300 bikes in September of 2014 led to this finding. Other violations were then discovered, like the late reporting of quarterly recall completion rates, and Triumph's failure to supply warranty data. Fines for these violations may seem harsh but U.S. Transportation Secretary Anthony Foxx said: "Manufacturers must comply with their reporting obligations. The law requires it, and public safety demands it. When companies fail to meet those obligations, we will hold them accountable." In FCA news, it seems that production of the Jeep Cherokee will be moved from the Toledo plant to a nearby state. Automotive News first reported on this adding that Jeep may produce a pickup alongside Wrangler to fill the void left by Cherokee. Jeep declined to comment on this news. Speculation surrounding Jeep's production plans depends on the automaker's ongoing negotiations with the UAW. Those are the highlights from the week that was. Be sure to check out my full recap this Saturday, including details on Ford's performance Fusion. For Autoblog, I'm Greg Migliore. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals. Jeep Autoblog Minute Videos Original Video Triumph Motorcycles

Jeep’s latest special edition tries to give the all-American Wrangler European appeal

Jeep has a long history in Europe, starting with GIs bouncing across the continent kicking Nazi ass and much later being a conspicuously American status symbol. It's been a varied existence, to be sure. And there have been a lot of Euro-only editions aimed at Continental tastes, like the Wrangler Polar and the Black Edition II. So this Mopar One Package version of the Wrangler Rubicon, which Jeep showed off at the Geneva show but was just showcased at the "Euro Festival" in Saint-Tropez, wasn't born in a vacuum. It really underlines the continuing appeal in Europe for stereotypically American things. "Euro Festival", after all, is a Harley-Davidson gathering. Harleys are expensive, conspicuous status symbols in Europe – and so is a Wrangler. The Mopar One Package is only available on the Rubicon, and is a little unusual in that it's more function-oriented than the normally cosmetic Euro packages. It has a 2-inch lift kit, larger 32-inch tires, a steering stabilizer, and accessory fenders. Jeep says this is the first time it's been able to offer factory-installed accessories in Europe, so now our friends over there can enjoy the highly addictive experience of ticking off boxes to customize a Wrangler. One thing the Euro Rubicon gets that we can't, which might make American Jeepers a little jealous, is the 2.8-liter CRD diesel engine. That's a VM Motori unit, similar to what was available over here in the Jeep Liberty for a hot minute. Euro Jeeps have used variants of this engine for years. If you want an off-road diesel comparable to the Euro Rubicon, you either have to move to the Euro Zone or buy a new Chevy Colorado ZR2 – which we just drove, by the way. No word on how much the Mopar One Package will set buyers back. It's likely that this is also just a beachhead for more factory customs from Mopar, not just in the Jeep world. It'll be interesting to see how Europe responds. Related Video: Aftermarket Jeep SUV Off-Road Vehicles

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.