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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.

The 2018 Jeep Wrangler will look a lot like the 2017 Jeep Wrangler

JL Wrangler Forums suggests the next-generation Wrangler will be restyled in an evolutionary way that maintains the off-roader's classic looks yet adds new features. The forum used intelligence from spy photos and leaked images to assemble renderings of the new Wrangler. They show that the front end is still classically Jeep, but with modern updates. The LED headlights and turn signals revealed in FCA drawings are noticeable changes. An interesting touch is just behind the rear bumper, where there appears to be an air dam for aerodynamics. There's still a gap between it and the front fenders to keep the old-school look intact. The grille, windshield, and hood are also more raked for the sake of aerodynamics. At the back, the lights follow the FCA drawings as well, though the reverse lights from those illustrations appear to be absent. The square taillights are also shown on the truck variant, along with the plastic fender flares of the SUV version. Spy photos of the Wrangler pickup have shown a streamlined box with integrated taillights akin to the Ram, but it's likely to be a placeholder until the final design is selected. The sides of both models also feature more squared-off details in the top and door handles, generally with beveled corners for a more modern look. The top is where things get fuzzy. The new model might lose its removable top altogether, in favor of removable panels similar to the Jeep Renegade. JL Wrangler Forums illustrated how this could work in the above image. The roof can be removed in sections, and the rear-most windows can also be taken out. The overall effect is similar to that of a current Wrangler Unlimited. There is a potential drawback to this system, though. All of these hard panels will have to be left somewhere. And unlike the current model, this one wouldn't have a soft-top back-up when the weather turns. It's hard to say for sure if this design will make it to production. FCA has consistently and effectively hidden this part of its Wrangler prototypes since they were first spotted. At this point, we can only speculate on how the top will function. Otherwise, these renderings seem plausible, and we should know how accurate they are when the Wrangler makes its expected debut next year. The new Wrangler will likely have some aluminum body panels, an 8-speed automatic and an available diesel powertrain. For more details and spy photos, check out our post that has assembled everything we know so far about the 2018 Wrangler.

Crawling Moab in the 2015 Jeep Renegade Trailhawk [w/video]

The funny thing about the Renegade Trailhawk is that Jeep still feels the need to defend it. For the past 20 years, automakers have sent emissary vehicles outside the citadel walls surrounding their brand niche. In doing so, these companies found buyers eager to join the cult instead of an angry horde. With the kingdom successfully expanded, automakers had to build new walls to contain this broader identity. This is the story of Jeep's modern expansion, growing with new models while the faithful at the brand's center howl at every quest into broader market segments. Thirteen years after it busted out the Liberty and eight years after birthing the Compass and Patriot, you'd think the resistance to new Jeeps would subside. But no. It's 2015, and while nobody makes the slightest tantrum over BMW's new minivan (except for Sniff Petrol), the Renegade still has to fight its way through pitchforks and torches. Which is a long way of saying that this author is guilty of brand prejudice, too. When the company told us that we'd spend the first day of the Easter Jeep Safari driving seven awesome concepts and the second day driving the Renegade Trailhawk on Dome Point Trail, we could only think, "They giveth excitement, and they taketh it away." Our pessimism was later proven to be incorrect. Sharing the sentiment our colleague Brandon Turkus expressed after his Quick Spin, we found the Renegade to be "in a word, impressive." Dome Point will not trouble a kitted-out Wrangler, but in a compact SUV with on-road tires the rocky sections were chunky enough to require close attention to your lines or use a spotter. As instructed, we put the little 4x4 into the Selec-Terrain's Rock mode, and with common sense plus one eye on the man directing us with hand signals the Renegade climbed over everything with some wheelspin but little fuss. At the first rest point, we turned the car off to wait for vehicles behind. Not realizing that this resets the drive mode to Auto, we crawled through the next two rocky jumbles in the default setting. The result was the same: a bit of wheelspin climbing over thick steps, but an altogether drama-free passage. Auto mode can't use the engine throttle maps unique to each Selec-Terrain setting, but it doesn't hamper the Renegade's capability by much. On a steep bit of trail with a crest capped by stacked stone plinths, it took three tries to find the right line, but that's on us – the Renegade did more than expected.