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Chrysler flooded with over 8,000 Ram 1500 EcoDiesel orders in 3 days

The diesel, half-ton pickup has long been a Holy Grail to many truck fans, largely because of its potential to achieve both high payload and great fuel economy. Strange, then, that auto companies have seemingly been slow to react. However, Chrysler is finally wading into the pool for the 2014 model year with a version of its Ram 1500 pickup, and early claimed returns are showing the advantage of being first on the market. The Auburn Hills automaker has just revealed that its initial allocation of 8,000 EcoDiesel trucks has been filled by dealers in just three days.
That flood of orders came from February 7-10, and that strong surge of interest apparently amounts to a new Ram record for the number of customer orders placed for a vehicle in such a short period of time. In fact, EcoDiesel models accounted for over half of Ram 1500 orders over that period, despite the fact that the diesel option costs several thousand dollars more than a comparable gasoline-engined model. That impressive total did not come entirely as a shock to Ram officials, however: "We knew customers have been asking for it," Nick Cappa, Ram Truck communications officer, tells Autoblog.
The 2014 Ram 1500 with its 3.0-liter EcoDiesel V6 and standard eight-speed TorqueFlight automatic makes 240 horsepower and 420 pound-feet - a combination good for 9,200 pounds of towing. Despite that pulling power, its fuel economy is rated at 28 miles per gallon highway (the best among trucks in its class), 20 mpg city and 23 mpg combined. Four-wheel drive variants gives up a single mpg in all categories.

Auto journo learns hard way that new vehicles burn differently than old ones

Terry Box, a writer for the Dallas Morning News, was tootling down the Dallas North Tollway in a Ram 1500 Laramie Longhorn pickup after work and enjoying the ride. Box thought the $53,335, option-filled press loaner had been "flawless - very serious competition for anything built by Ford or Chevy." And then, for reasons that still aren't clear, something in the engine compartment caught fire and the Ram cremated itself on the shoulder of an off-ramp.
Box tells the story and it isn't an indictment of the truck, but a cautionary tale about how new vehicles don't burn like the old ones did - and why not to go back for your gym bag. It could also be a kind reminder about what kind of safety gear everyone should keep in their cars. Click the link to read the whole piece.

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.