2014 Jeep Grand Cherokee Limited 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.

2014 Jeep Cherokee: Introduction

When we look back at some of the more shocking product launches of recent yeras, the Jeep Cherokee is certainly high up on the list. And we aren't just talking about its off-the-wall, polarizing design.
For starters, it brought back the iconic Cherokee nameplate - something Jeep enthusiasts have coveted for ages. But beyond that, it brought a new evolution for the Jeep brand. After all, the Cherokee is car-based - using the same compact platform that underpins the Dodge Dart and Chrysler 200. It has a greater focus on technology and refinement than ever before, in an effort to appeal to a new crop of Jeep customers. And powering it all is a new (optional) V6 engine paired with an equally new nine-speed automatic transmission.
Can the Cherokee's car-based roots still allow for a vehicle that's superb when the going gets tough? Will its design still be a love/hate affair in one year's time, or will it start to blend in? Is the powertrain strong enough to not only support the needs of daily driving and road trips, but blaze a few trails as well? We're aiming to answer all these questions, and more, over the next 12 months. Welcome to the Autoblog long-term garage, Cherokee.

Chrysler highlights Mopar lineup for SEMA

SEMA is all about aftermarket parts, and in Auburn Hills that all comes down to one name: Mopar. After having previewed its lineup for this year's Vegas tuner expo earlier this month, Chrysler has now revealed what may not quite be its full dossier of modified show cars, but a good portion of them.
All told Mopar is preparing 20 vehicles for display at SEMA this year. Among them you'll find the Ram Sun Chaser, a 1500 Quad Cab show truck kitted out in two-tone orange and black paint, a roof rack for surfboards, onboard shower and convertible tailgate. The white Fiat 500L is called the Adventurer and is modified for a more rugged look that could hint at the upcoming crossover version. The Jeep Cherokee Trail Carver upgrades on the Trailhawk package with everything from roof basket to rock rails. To counterbalance the off-roaders, there's also a modified Chrysler 300S with a deep black paint job, special grille, Varvatos-edition wheels and more.
All four concepts details so far have Katzkin interiors as well, and there's also an unspecified Dodge Durango with a storm-trooper look in the gallery above. But for more details on what Mopar has installed on the Ram, 500L, Cherokee and 300, you'll want to delve into the press release below.