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FCA fibbed on sales according to internal report

Following last week's news that Fiat Chrysler Automobiles (FCA) is under investigation by the Department of Justice and Securities and Exchange Commission for allegedly fudging sales figures, a new report in Automotive News says an internal investigation at FCA uncovered misreported sales. According to the AN story, 5,000 to 6,000 vehicles from various FCA brands were reported sold by dealers, but no customers existed for those cars. FCA sales chief Reid Bigland has already put a stop to the practice. One potential reason for the practice was to maintain the company's month-to-month sales increase streak, currently at 75 months. In April, FCA added a lengthy disclaimer to its sales announcements: "FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month. "Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system." FCA did not provide comment to Automotive News. Click through for the full story and more details. Related Video: Earnings/Financials Government/Legal Chrysler Dodge Fiat Jeep RAM sales Sergio Marchionne FCA USDOJ reid bigland

Ram 1500 EcoDiesel is coming soon, but a midsize Ram, not right now

NEW YORK — At this year's New York Auto Show, we had the opportunity to talk with the head of Ram Trucks, Jim Morrison, and he had a few interesting tidbits about what's coming and what isn't for the brand. The first big news is that the 3.0-liter turbocharged V6 diesel is finally coming to the all-new Ram 1500 later this year. Up until now, the engine was only available in the previous-generation Ram 1500 and current Ram 1500 Classic. The new Ram 1500 EcoDiesel won't have the same engine, though. It will be a redesigned 3.0-liter turbodiesel that will also appear in the Jeep Gladiator in 2020. That means it should also make 260 horsepower and 442 pound-feet of torque, unless the Ram gets unique tuning that changes the output. Morrison wouldn't elaborate on any other details, though, including whether it would utilize the eTorque mild-hybrid assist of its gas powered cousins. The other news concerns things we probably won't see from Ram anytime soon — and one of them is a midsize pickup truck. Morrison said there are no plans for one yet, though the company is always considering options. In the meantime, the current strategy is to offer the Ram 1500 Classic as an option to potential midsize buyers. The thinking, of course, is that the Ram 1500 Classic is cheaper than the redesigned Ram 1500, and it's a bigger truck than midsizers. We can't help but wonder if the Gladiator might also make a midsize Ram a tougher sell at the moment. Finally, Morrison still had nothing to say about a regular cab offering for the redesigned Ram 1500. The only full-size Ram 1500 offering with a regular cab is the Classic model, leaving four-door models only on the normal 1500. We know that regular cabs don't sell well, so it's understandable that there isn't an offering yet, but it seems the company will have to offer one eventually when the Classic runs its course. Odds are that a future Ram 1500 regular cab will look something like the Ram 2500 and 3500 regular cab models, but with a more subdued grille.

FCA goes all-in on Jeep and Ram brands on cheap gas bet

It's no surprise that as SUV and truck sales remain strong in the wake of unusually cheap gas, Jeep and Ram sales are taking off. What is a surprise is that FCA CEO Sergio Marchionne thinks that cheap gas will be a "permanent condition," and feels strongly enough about it to change up North American manufacturing plans. Jeep appears to be the biggest beneficiary of the product realignment. In addition to increasing the sales estimates for the brand worldwide upwards to 2 million units a year by 2018, the brand will get a flood of investment for new product and powertrains. Consider the Wrangler Pickup to be part of the salvo, as well as the Grand Wagoneer three-row announced in 2014 as part of the original five-year plan. The Wrangler four-door will get at least two new powertrains, a diesel and mild hybrid version, in its next generation. That mild hybrid powertrain may utilize a 48-volt electrical system like the one that's being developed by Delphi and Bosch – which the suppliers think will be worth a 10 to 15 percent fuel economy gain at a minimum. Down the road, in the 2020s, the Wrangler could adopt a full hybrid system. The diesel powertrain is planned for 2019 or 2020. The Ram 1500 is also pegged to receive a mild hybrid system, again potentially based on 48-volt architecture, sometime after 2020. Lastly, Jeep and Ram will take over some of the production capacity of existing plants. The Sterling Heights, MI, plant that builds the Chrysler 200 will now build the Ram 1500; the Belvidere, IL, facility that produces the Dodge Dart will take over Cherokee output; the big Jeep facility in Toledo, OH, will be used for increased Wrangler demand. In 2015, according to FCA's numbers, car and van demand went down by 10 percent, but SUV demand went up 8 percent and truck demand 2 percent. Considering that these are high-margin vehicles, FCA can't ignore the math. FCA also won't build any new factories to supplement production to meet demand, but instead are reshuffling production priorities. Think of it this way: FCA is gambling on cheap gas being a permanent part of our lives, at least into the 2020s. By doubling down on SUVs and trucks, the company stands to win big, unless a spike in gas prices changes the landscape. FCA isn't talking about a Plan B, so they're all in. It'll be interesting to see how this plays out.