2014 Jeep Wrangler Unlimited Sahara on 2040-cars

Auto blog

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.

Jeep Scrambler truck to debut at L.A. Auto Show next month

Jeep is planning to premiere a pickup truck at the Los Angeles Auto Show next month. We all know what that means: It's Scrambler time, folks. This news comes courtesy of a press release talking about the show in general. It casually mentions that "a pickup truck from Jeep" is coming. Up until now, we weren't sure when the Wrangler-based pickup would make its debut, but that's not a problem anymore. There sure aren't any other pickups from Jeep in the works we know about. The release details a few other debuts happening at L.A. as well. Audi confirmed we'll be seeing the E-Tron GT four-door concept. Mitsubishi is planning to show off a new concept car — it better not be an SUV with any Evo references. Hyundai is debuting an "all new" vehicle, and Kia is apparently planning on multiple new vehicle debuts. All of that is great, but the biggest splash is almost guaranteed to be the highly anticipated Scrambler. Everything is still speculation, but we're expecting the Jeep truck to offer both the Wrangler V6 and turbo four-cylinder powertrains at launch. We anticipate a diesel showing up at some point down the road, but almost certainly not at this auto show. L.A. mostly plays host to a whole lot of mobility pod news, but there are always a few big reveals like this one. Porsche fans will be able to see the 992-generation 911 on the show floor that we've already seen about 10 times over in spy photos too. Related video: Featured Gallery Jeep Wrangler Scrambler pickup spy shots View 51 Photos LA Auto Show Jeep Truck Off-Road Vehicles 2018 LA Auto Show jeep scrambler

2015 Ford F-150 named Truck of Texas, Lincoln and Jeep also awarded at Truck Rodeo

The Ford Motor Company has a lot of reasons to celebrate after winning eight categories in this year's Texas Auto Writers Association's annual Truck Rodeo. Most important among them, the Blue Oval's latest 2015 Ford F-150 earned the prestigious Truck of Texas award, ending the Ram 1500's two-year winning streak. The 2015 Lincoln MKC also grabbed the honor as the CUV of Texas, and Ford was named Truck Line of Texas.
FoMoCo even took trophies for best technology with its extensive use of aluminum on its latest F-Series and best commercial vehicle for the new Transit 250. It wasn't a total sweep, though, because the Jeep Grand Cherokee grabbed the title of the SUV of Texas for the fifth straight time.
This year's event put 60 auto writers in 75 pickups, SUVs and crossovers and challenged them to find the best in a plethora of categories. All of the winners are listed below, and scroll down to read the full announcements from the Texas Auto Writers Association and Ford.