1972 Jeep Wagoneer 5.9l 4wd on 2040-cars

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Sergio rethinks FCA-GM merger idea, dismisses critics

After many public overtures, Fiat Chrysler Automotive CEO Sergio Marchionne has claimed his company won't be making a hostile takeover bid for General Motors. This is despite widespread speculation that FCA's desire to merge was motivated by its allegedly dire situation. As one unnamed GM exec who spoke to Automotive News earlier this year put it, "Why should [GM] bail out FCA?" "We are not choking. We are in relatively decent shape," Marchionne told journalists attending an FCA shareholder meeting in Amsterdam, AN reports. "We have been publicly rebuffed, we have been rejected and you cannot force these things. I don't want to. At the moment, we have no intention to do anything hostile." Instead of focusing on merging with GM, or any other partners for that matter, FCA will refocus on implementing its ambitious five-year investment plan, which would see it dump $52 billion into its various brands, with a particular focus on Alfa Romeo, Maserati, and Jeep. So far the attempt has largely been unsuccessful, especially as it relates to the Italian brands. Earlier this week, additional reports emerged that claimed Alfa was pushing back the Giulia and an unnamed CUV while reassigning resources to updated versions of the Giulietta and MiTo hatchbacks. This is not the first time we've heard about trouble for the Giulia, of course. For Masearti, though, it was the first we'd heard of delays for Alfieri sports car, which allegedly won't appear in 2016, as promised. We can expect a proper breakdown of FCA's adjusted plans when Marchionne and Company reveal an updated product slate next month. Related Video: The video meant to be presented here is no longer available. Sorry for the inconvenience. News Source: Automotive News - sub. req.Image Credit: Paul Sancya / AP Alfa Romeo Chrysler Fiat GM Jeep Maserati Sergio Marchionne FCA

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.

10 Facts about the 2018 Jeep Wrangler

The 2018 Jeep Wrangler is here. It debuts this week at the Los Angeles Auto Show and it's going on sale in January. After years of anticipation, it's finally reality. Here's our complete First Look, but to break it down further, here's things you'll find curious, cool, absolutely necessary, or just plain interesting. – The 2018 Jeep Wrangler (JL) will be sold concurrently during 2018 as inventory is moved out. This means you might be able to get a decent deal on the outgoing model, the JK. It gets a little confusing since the JK and the JL will both be 2018 models, which suggests the JK sell-down might take awhile. Mike Manley, Jeep boss, defended the strategy during a briefing in Auburn Hills, and noted it's somewhat common across the industry. – The doors: They lift out and have handles so you don't drop them. There's also half-doors that will be offered in 2019. Doors weren't standard on Wranglers until the early 1980s. – There are multiple trims. The two-door comes in Sport, Sport S or Rubicon. The Unlimited is Sport, Sport S, Sahara or Rubicon. Expect more to come. – The EcoDiesel arrives in 2019. This could be interesting. Jeep says it's in response to consumer demand, and it could be a differentiator from the Ford Bronco or other utes looming on the horizon. The V6 is the same engine from the Ram and Jeep Grand Cherokee EcoDiesel models. In the Wrangler, it pumps out 260 horsepower and 442 pound-feet of torque. – The Sky One-Touch power top is cool. With a touch of a button, the canopy of the roof scrolls back. Perfect for the urban or actual jungle. It's offered on Rubicon and Sahara four-door variants. – What they didn't do: The speculation surrounding the Wrangler's future hit a fever pitch in 2015, and most of rumors didn't pan out. It's still built in Toledo, Ohio and it's still body on frame. – Some of the rumors were (kinda) on point. Aluminum was used, fairly extensively. The doors, door hinges and front fenders are aluminum. The rear swing gate is magnesium. No one was speculating on that one. – The badges are cool, and Wrangler enthusiasts will love them. There's one on the swing gate that harks back to the Willys predecessors and offers cool stats, like the fording depth of 30 inches. There's also a silhouette on the shifter and the steering wheel is meant to conjure the image of the Y-shaped ones on military vehicles. You kind of need to squint for that one, but there's plenty of other Easter Eggs.