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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.

Dodge vs. Chevy tug-of-war taken to the extreme

They say "idle hands are the devil's playground," but said playgrounds grow to Disney-sized proportions when a pair of jacked-up trucks, two egos, a chain and an empty mall parking lot are involved. Proof of this is the video below, which shows a Cummins-powered Dodge Ram circa 2006 to 2008 chained tail-to-tail with what looks to be a gasoline-powered Chevrolet Silverado from the late 1990s or early 2000s.
We don't necessarily have to tell you who wins this battle, but we'll let you see for yourself the lengths the "winning" driver goes to prove his point. There's plenty of foul language in the video below, so beware that this might be Not Safe For Work, and not that we should have to tell you, but please, do not try this at home.

2019 Ram 1500 eTorque First Drive Review | The un-hybrids

Misinformation is already being passed around about the 2019 Ram 1500 eTorque – reports calling the new electrified version of the full-size half-ton pickup truck a hybrid and saying its eTorque system adds torque to the truck's engine increasing payload, towing capacity, and performance. Don't believe a word of it – this isn't a hybrid in the conventional sense of the word. eTorque does not increase the truck's power or capability. Instead, the system feeds in some electric torque at low RPM, which helps with fuel efficiency by spinning up the engine during start/stop operation, smoothing gearchanges, and harvesting some energy from braking – that's basically it. Ram is partially to blame for the hybrid confusion. Although the "h"-word does not appear anywhere on the truck or the vehicle's window sticker, the automaker has chosen to call eTorque a "mild-hybrid system", which implies that it might be able to propel the truck on electric power. But the Ram's small battery pack and single electric motor cannot – it's more similar to the original GM Parallel Hybrid Truck system than the later two-motor, two-mode hybrid system circa 2009. Also, eTorque applies power to the engine and the wheels briefly at very low engine speeds and during gear changes. These applications of power only last for fractions of a second at any given time, some as quick as the blink of an eye. So it's a labeling fiasco, but Ram's explanation of the eTorque system's operation and its benefits, which are significant, can also be perplexing. And the resulting discombobulation is unfortunate, because eTorque is clever, and it really does work. Earlier this week we drove two Rams with the system, one a V6 and one a Hemi, through Kentucky horse country, and came away impressed by its measurable contributions to the truck's fuel efficiency, drivability and smooth operation. We also interviewed Mike Raymond, the Chief Engineer on the Ram 1500, and Brian Spohn, Ram's Vehicle Electrification Manager, Powertrain Engineering, to better understand what it is and how it functions. How eTorque works Ram will offer the 3.6-liter 24-valve V6 with eTorque as the standard engine in most models. The V6 will not be available without eTorque, although we'd be surprised if it wasn't added to the menu at a later date.