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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.

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:

Jeep Grand One and Quicksand Concepts lead the charge to Moab

Jeep's past, present, and future all share equal billing at the 51st annual Easter Jeep Safari in Moab. We're suckers for vintage Jeeps, so the all-new Grand One Concept really stands out among the seven vehicles that make up Jeep's conceptual take on the off-road event. It's based on a 1993 Grand Cherokee in a slightly early celebration of the model's 25th anniversary. Exterior mods include custom fender flares for clearance over 18-inch wheels and 33-inch BFGoodrich Mud-Terrain KM2 tires, trimmed front and rear fascias and what FCA is calling a "subtle wood grain" splashed on the vehicle's bodysides. An extended wheelbase ought to offer a bit more room inside, and a two-inch suspension lift will help when the going gets tough. No alterations are mentioned to the vehicle's 5.2-liter V8 or 4-speed automatic transmission. The second most interesting concept for Moab is the Jeep Quicksand. It's clearly Wrangler-based, but instead of a traditional rock-climbing focus, this one's built for the sand dunes. Power comes from a worked-over Mopar 392 Crate HEMI engine topped with an eight-stack fuel injection system that peeks through the hood. A six-speed manual sends the ponies to all four wheels, but with a unique twist: 32-inch BFGs in the front and 37s in the rear in what Jeep says is its first application of staggered tire sizes on a concept vehicle. A Warn winch concealed in a vintage-style Moon tank at the front is the finishing touch. The Jeep Safari Concept is all about letting the outdoors in while keeping the elements out. A translucent hardtop and four aluminum and clear vinyl doors are the most obvious changes from stock, and two rear seats have been angled outward so that their occupants get a better view outside. Dana 44 axles and a two-inch suspension lift come from the Mopar parts catalog, but the roof-rack-mounted drone and dash-mounted iPad are custom one-off touches. Power comes from a stock 3.6-liter V6 and five-speed automatic transmission. Perhaps more intriguing than all the custom bits and baubles, though, are what appears to be next-gen Wrangler bodywork. Take a look at the kinked grille, the outer slats of which are pinched by the headlights, and the shape of the rocker panel between the front and rear door. No, this isn't exactly a 2018 Wrangler hiding in plain sight, but it's certainly a nod toward the future. Jeep's Switchback Concept looks to be a rolling Mopar parts catalog.