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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.

Autoblog Podcast #523 | BMWs, Trackhawk and Mazda's new engine technology

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Associate Editor Joel Stocksdale. We discuss a couple of BMWs, the upcoming BMW X7 three-row SUV and our short-term BMW M760i with a turbocharged, 600-horsepower V12. We also cover the week's news, including Mazda's nifty engine technology it will roll out in the next few years, as well as pricing on the new Jeep Grand Cherokee Trackhawk. The rundown is below. Remember, if you have a car-related question you'd like us to answer or you want buying advice of your very own, send a message or a voice memo to podcast@autoblog.com. (If you record audio of a question with your phone and get it to us, you could hear your very own voice on the podcast. Neat, right?) And if you have other questions or comments, please send those too. Autoblog Podcast #523The video meant to be presented here is no longer available. Sorry for the inconvenience.Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Topics and stories we mention Rundown BMW X7 Spy Shots Volkswagen Passat GT Mazda's future engine technology Jeep Grand Cherokee Trackhawk Pricing BMW M760i driving Ram 2500 driving Spend My Money Feedback Email – Podcast at Autoblog dot com Review the show on iTunes

Least satisfying vehicle rankings seek to highlight the worst cars of the year

Consumer Reports polls its members on all sorts of topics related to how they buy and use products ranging from mobile phones to humidifiers for indoor plants. Cars are regularly one of CR’s most interesting topics, and its recent study on the least satisfying vehicles to own offers insights into the cars people wish they hadnÂ’t purchased. CR polled thousands of members with questions about what they liked and disliked about the vehicle theyÂ’d owned for a few years. When asked if they would definitely repurchase the same car, the following vehicles came back as the least likely to be purchased a second time: Kia Forte: 51% would buy again Nissan Altima: 51% would buy again Nissan Kicks: 49% would buy again Volkswagen Taos: 48% would buy again Kia Seltos: 48% would buy again Jeep Compass: 46% would buy again Mercedes-Benz GLA: 45% would buy again Infiniti QX50: 40% would buy again Mercedes-Benz GLB: 39% would buy again Volkswagen Atlas Cross Sport: 38% would buy again When Autoblog tested the VW Atlas Cross Sport in March 2022, we liked the styling and the price was right, but it lagged rivals in driving excitement and interior quality. A number of recalls donÂ’t help the Cross SportÂ’s cause much, either, as some models have more than a dozen actions by the National Highway Traffic Safety Administration. Even the 2023 model already has four recalls. The annoyance of recalls and the hassle of just-average reliability ratings could have played into the Cross SportÂ’s place as the least satisfying vehicle. On the other end of the spectrum, the Chevrolet Corvette earned the top spot as CR's most satisfying car. The Porsche 911, Rivian R1T, Ford Maverick Hybrid, and Hyundai Ioniq 5 round out the top-five most satisfying vehicles to own. Given the rabid following the 911 has built over the years and the insane performance Chevy derived from the latest Corvette, itÂ’s not surprising to see them in the top spots. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Green Infiniti Jeep Kia Mercedes-Benz Nissan Volkswagen Car Buying Used Car Buying Consumer Reports worst cars