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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.

2021 Ram 1500 could finally get tech handed down from HD lineup

Based on details gleaned from spy shots of a 2021 Ram 1500 Laramie Sport Quad Cab 4x4 prototype, Mopar Insiders believes the 2021 Ram 1500 will adopt a few serious pickup convenience features, two of which have found homes on Ram heavy duty pickups for years. The first is towing mirrors with cameras as part of the pickup's 360-degree camera system. The Surround-View Cameras can be had as part of the Advanced Safety Group on the 1500 now, but they haven't been available with the trailer tow mirrors. On the heavy duty Rams, the Surround-View Cameras come as part of the Towing Technology Group. It's possible Ram will address the omission with next year's 1500 pickup. The same mirrors have been seen on the Ram 1500 Rebel TRX prototypes as well. The second hand-me-down from the heavy duty range is a bed-view camera mounted on an LED brake light at the back of the cab — Ram calls it the Center High-Mount Stop Lamp with Cargo View Camera. Some Ram owners making mods to their trucks, like installing a Tazer DT plug-in to access more vehicle settings, have discovered the camera line already installed as part of the harness. Next year could be when Ram decides to activate it. The last feature is trailer steering knob that serves a similar function to the Pro Trailer Backup Assist that can be optioned on the Ford F-150. The knob has been seen on leaked interior shots of the Rebel TRX, so it's assumed to spread to the rest of the 1500 trims. When backing up with a trailer, a driver turns the steering wheel in the opposite direction he wants to trailer to go. To make the job easier for occasional haulers, in a truck with trailer steering feature, the driver turns the dial in the direction he wants the trailer to go, and the software takes care of turning the truck to make the request happen. Since the fifth generation Ram 1500 only arrived for the 2019 model year, we don't expect substantive changes for 2021. Another big addition would be Uconnect 5, which debuts on the 2021 Pacifica but could slide to the Ram side of the family before the new model year. Related Video:

Ram 1500 Rebel TRX reveals hood scoop-mounted marker lights

Now that the Ram 1500 Rebel TRX is testing with production bodywork, the company has been doing a thorough job of covering up the off-road super truck. But fortunately lights still show through the thick coverings, and we're finally able to see the truck's wide vehicle-denoting marker lights. As you can plainly see, they're mounted to the inside of the hood scoop. This differs from the original Ram TRX concept that had its lights mounted on the roof like a traditional heavy duty pickup truck. It also differs from the Ford F-150 Raptor's grille-mounted marker lights. Both the Raptor and the TRX have these lights not just for style, but because they're wide enough to require the amber marker lights with three in the middle and one on either side of the truck. We can't quite spot the outside marker lights for the Ram. They could be integrated into the headlights, since it seems like the turn signal is particularly wide on this truck compared with regular models. The position of these lights also matches a recent report, lending some more credibility to other claims in it. We expect the Ram 1500 Rebel TRX to be revealed by the end of the year, perhaps as soon as the Detroit Auto Show, which is still scheduled for June. We know it will have a supercharged V8, since we've heard it ourselves, and reports say it will make at least 707 horsepower like the Charger and Challenger Hellcat. It has thoroughly modified suspension for high-speed off-roading, just like the Raptor. And of course it will have four-wheel drive.