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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.

2023 Ford F-150 Raptor R vs. 2022 Ram TRX | By the numbers

Ford has responded to the Ram 1500 TRX with its own supercharged supertruck: the brand-new 2023 Ford F-150 Raptor R. Ford may be late to the party, but fans can rest assured that its 5.2-liter supercharged V8 is ready to throw down, packing 700 horsepower in a leaner, more-focused package. You can read all about the new Raptor R in our debut write-up, but if you're curious how it stacks up to the TRX by some of its key metrics, you're in the right place. Let's get started.  Performance Let's go ahead and get this one out of the way. Both of these trucks offer blistering performance figures, but a quick glance at the specs suggests a clear winner. Both the Ford and Ram are half-ton crew cab pickups powered by supercharged V8s, but how that package comes together differs pretty significantly between the two.  2023 Ford F-150 Raptor R Engine: 5.2-liter supercharged DOHC V8 Power: 700 horsepower Torque: 640 pound-feet Suspension: Independent double-wishbone (front); five-link coil with Panhard rod (rear); continuously variable active Fox dampers (both) Curb Weight: 5,950 pounds 2022 Ram 1500 TRX Engine: 6.2-liter supercharged OHV V8 Power: 702 horsepower Torque: 650 pound-feet Suspension: Independent double-wishbone (front); five-link coil with track bar (rear); active Bilstein dampers (both) Curb Weight: 6,395 pounds Conclusion It was looking good for the TRX right up until the end there. Ram has the edge in total power and torque — just barely — but that advantage disappears when you consider the TRX's extra heft. 400 pounds may not seem like the end of the world in the context of these trucks, but weight plays a roll in all aspects of performance. This looks like a home run for the Blue Oval.  Off-road Raptor was the default half-ton performance truck for many years, but with OEMs getting ever more serious about building full-size pickups that can take a beating off-pavement, Ford has leaned harder into the Raptor's high-speed performance. Ram's approach was similar, only with more power — until now, that is. But there's more to off-roading than blasting across the desert.

Range-extended electric Ram 1500 coming in 2024

Ram is making a big deal about the full-electric Ram 1500 coming in 2024, as well it should. It will be a major competitor to the Ford F-150 Lightning and Chevy Silverado EV, and it will have an interesting development process with input from Ram fans. An all-electric model would generally be big enough product news, but it's getting an interesting addition: a range-extender model. We learned this in an interview with Ram CEO Mike Koval Jr. He noted that it will be a part of Ram trying to respond to customer interests and concerns, as well as offering more than expected. He didn't go into detail about the powertrain, but it will launch alongside the electric model in 2024. It sounded as though it will be based on the electric truck, but with some sort of gasoline engine to provide power. It's not clear if it would be a pure series hybrid a la BMW i3, or if the engine would engage the wheels to provide some propulsion. We think there's one big area where this powertrain makes sense: towing. While capable of towing huge amounts, electric vehicles tend to lose a drastic amount of range when towing. And especially with an underdeveloped charging network, it would make towing any distance frustrating — and a big issue, when towing is a big reason for owning a large truck. Introducing an internal combustion engine for occasional towing would mean that a Ram buyer could have a much more efficient experience, and still have full EV capability when not towing. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.