2014 Ram 1500 Tradesman/express 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.

Do you guys like trucks?

Do you guys like trucks? If the answer is yes, boy do we have the show for you! The 2018 North American International Auto Show is lousy with 'em. Yeah, we saw the new Ram 1500, Chevy Silverado and Ford Ranger, but that's just scratching the surface. There are big trucks, little trucks, clean trucks, dirty trucks, old trucks, new trucks, red trucks, blue trucks. It's like a Dr. Seuss book. Anyway, we made a little video for you truck nuts (see what I did there?). Check it out above, and if you're looking for more serious coverage of the Detroit Auto Show, we've got it, along with a ton of images and other videos from the show floor. Enjoy! Related Video: Humor Detroit Auto Show Chevrolet Ford GMC Honda Lincoln Nissan RAM Toyota Truck Videos Original Video 2018 detroit auto show

Ram Rebel TRX concept is a Hellcat-powered Raptor-fighter

Ford has proven that fast off-road trucks are awesome. Dodge has proven that ridiculously powerful supercharged V8s are awesome. Combining the two would theoretically be even more awesome. The Ram Rebel TRX, which was unveiled at the Texas State Fair, proves that theory. As you may have guessed from the intro, the Rebel TRX uses a supercharged V8. A version of the supercharged 6.2-liter V8 from the Hellcat twins (and, we suspect, the Jeep Grand Cherokee Trackhawk). Because of some new calibrations to make the engine more suited for off-road driving, it doesn't make the full 707 horsepower of the Charger and Challenger. But the TRX engine still cranks out 575 horsepower, which is a full 125 more than the new SVT Raptor. That's enough to propel the mega-sized truck to 100 mph in its off road terrain mode. Power is transferred through an 8-speed automatic transmission to all four wheels. At the back, the Rebel TRX has an electronic locking differential. The TRX also gets an updated version of the Ram's 4x4 Performance Control System featuring Normal, Wet/Snow, Off-road and - best of all - Baja modes. The latter mode is the one that will do triple digits through the desert. Of course a sweet powertrain needs chassis and tire upgrades to round out the package, and the Rebel TRX has plenty of improvements. The standard Ram 1500 frame is unchanged, but bolted to it are custom front control arms, internal bypass shocks at each corner and new springs. The changes bring suspension travel to a full 13 inches all around. It also provides enough space to fit massive 37 x 13.5-inch tires. Ram also added six-piston calipers with 15-inch discs at the front and 14-inch discs at the back. Finally, Ram gave all this heavy duty equipment a big, burly wrapper. The body is a full six-inches wider than the standard 1500 with large composite fenders to cover the aforementioned tires. The truck also has a vented and scooped hood based on the Ram HD. This was necessary to help cool the engine and provide vertical clearance for the supercharger. A large sport bar was added to the back and has provisions for carrying a pair of spare tires, plus an LED light bar on top. The truck also has a big steel skid plate up front, and a sweet integrated side-exit exhaust behind the doors. Inside, the truck gets plenty of leather, suede and carbon fiber. The front seats also have racing harnesses attached to a harness bar that spans the B-pillars.