2014 Ram 1500 Laramie 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.

These are 2014's best-selling cars and trucks

Now that 2014 is no more than a set of numbers on spreadsheets, at last, the grist mill gets its first real load to chew on. The number one selling vehicle in America last year was the Ford F-Series, a fact that should surprise you only if your family name is Van Winkle and your naps tend to last 38 years, which is how long the Ford pickup has ruled our buying landscape. Even though series sales were down 1.3 percent, it still racked up 753,851 units. That's 2,065.3 sales per day, every day, all year. The Chevrolet Silverado, up 10.3 percent for the year, was still a daylight second at 529,755 units. The cab-and-bed love continued into third place with the Ram 1500-3500 trucks, gaining 23.6-percent year-on-year to clock 439,789 units. The robust turnout at The Bighorn and Jeep helped Fiat-Chrysler increase its sales by 16 percent, past the two-million mark. Our number one car? The Toyota Camry, staying in first place with a 4.9-percent sales boost to 428,606 sales, trailed again by the Honda Accord at number five with 388,374 sales. Accord sales rose six percent, and if it's any consolation to Honda for coming in second - not that it needs one - it is the only manufacturer to have three vehicles in the top ten. The rest of the list: the Nissan Altima with 335,644 sales (+4.7%), the Honda CR-V with 355,019 (+10.2%), the Toyota Corolla/Matrix combo with 339,498 (+5.9%), the Honda Civic with 325,981 (-3.1%), and the Ford Fusion with 306,860 sales (+2.9%). Total sales for the year were up six percent to 16.5 million vehicles, a volume not seen since 2006, aided by a strong December that was up by 11 percent year-on-year. Ford was the top selling brand overall but sales didn't really budge from 2013, while Subaru rocketed up 21 percent to finish with 513,693 sales. At the precious end, BMW, Audi, Porsche and Land Rover all had record years, and Kelley Blue Book thinks we could be looking at 17 million sales for the next two or three years. Looks like it's time to start making hay again... Featured Gallery Best-selling vehicles of 2014 View 10 Photos News Source: Detroit News, Associated Press Auto News Chevrolet Ford Honda Nissan RAM Toyota Car Buying Truck Sedan sales

Italian coachbuilder transforms the Ram 1500 into an ostentatious limousine

Motorists who were smitten by the Mercedes-Maybach Ultimate Luxury concept and disappointed by the brand's decision not to build it now have a consolation prize. Created by an Italian coachbuilder named Aznom, the Palladium is a sedan-like four-seater limousine built on a platform borrowed from the Ram 1500 pickup. The Palladium exists at the intersection of sedans and SUVs, both in terms of design and in terms of construction, and it's marketed as a hyper-limousine. Surprisingly, company founder Marcello Meregalli explained he began looking into building a truck-based sedan after seeing the Cadillac-badged presidential limousine unveiled in 2008. "That particular Cadillac gave the final push" to the idea, he reminisced in a statement. Beauty is very much in the eye of the beholder, so all we'll say about the Palladium's sheet metal is that it isn't subtle. Its front end is dominated by a grille with vertical LED inserts, thick pieces of chrome trim, and headlights that look 1500-esque if you squint. Viewed from the side, it's evident there was little stylists could do to mask the 1500's extra-long wheelbase, and the four doors are straight off the truck. And, the entire rear fascia rolls out like a giant drawer to give customers access to the trunk. It's a feature that's odd and innovative at the same time. The basset-like proportions likely make the Palladium a nightmare to parallel park, especially in its home country of Italy, but they also allowed stylists to carve out an unusually spacious interior designed primarily for rear-seat comfort. Passengers riding in the back travel on a bench that Aznom describes as a throne, and they benefit from creature comforts like a separate air conditioning system, a Harman-Kardon sound system, two Microsoft tables, plus an on-board fridge. Of course, there's space to store crystal glasses; how could there not be? Power for the Palladium comes from a twin-turbocharged version of Ram's 5.7-liter Hemi V8 engine. It's tuned to develop 710 horsepower and 701 pound-feet of torque, and it's bolted to an eight-speed automatic transmission. Aznom quotes a 4.5-second sprint from zero to 62 mph, which is on par with the Hellcat-powered 1500 TRX's time and impressive for a beast that tips the scale at 5,842 pounds. Part-time four-wheel drive comes standard. Ten cars will be manufactured, and each one will be unique because clients will be invited to participate in the design process.