1947 Dodge 1/2 Ton Pickup Wc Truck Antique Collector 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.

Junkyard Gem: 1986 Dodge Ram 50

After years of selling the Isuzu Faster with Chevrolet LUV badges here, GM replaced it with the S-10 in 1982. Ford sold Mazda Proceeds with Courier badges for even more years, but ditched the Courier once the Ranger became available as a 1983 model. Chrysler was able to put truck beds on Omnirizons at that time, but didn't have the deep pockets to develop its own rear-wheel-drive small pickup; for this reason, Dodge-badged Mitsubishi Forte pickups continued to be available in the United States all the way through the 1994 model year. Here's one of those trucks, found in a Colorado car graveyard. The first Chrysler-imported Mitsubishi Fortes showed up in the United States as 1979 models. The Dodge-badged version was known as the D-50, while Plymouth dealers got theirs with Arrow badges. The Dodge D-50 became the Ram 50 for the 1981 model year, while the final Plymouth Arrow trucks were sold as 1982 models. Just to make things more interesting, Mitsubishi started selling its own vehicles in the United States beginning with the 1983 model year. That meant that the Ram 50 had to compete for sales with a near-identical twin sporting Mitsubishi badges. Things in the Chrysler-Mitsubishi universe got even more exciting a bit later, when there were four marques selling essentially the same car here simultaneously: the Mitsubishi Mirage, Plymouth Colt, Dodge Colt and Eagle Summit. All of the Dodge D-50s and Ram 50s came with Mitsubishi power under their hoods. This one has a 2.0-liter SOHC straight-four rated at 88 horsepower and 108 pound-feet. For a while, a 2.3-liter Mitsubishi diesel was available in the Ram 50. It had been discontinued by 1986, however. This one has the base five-speed manual transmission. It appears that this truck was being used for long-term storage of many, many boxes of random household stuff when it was banished to this place. Much of the stuff was scattered on the ground nearby. Perhaps it was parked at a rent-a-storage facility and got evicted for lack of rent payments. Much of the contents consisted of stacks of newspapers and magazines from the 1960s and 1970s. Here's an Art Buchwald column about then-Vice President Spiro Agnew from February 23, 1971. Here's a Beetle Bailey strip from the same year. There's plenty of history in the junkyard, if you know where to look. There must have been a half-ton of paper in this truck when it arrived here. Sadly, some family's photo albums were here as well.

FCA recalling 63k Jeeps, Vipers and Ram ProMaster City vans

Fiat Chrysler Automobiles has announced a pair of recalls cover nearly 63,000 vehicles. The bigger of the two actions covers manual-transmission-equipped vehicles from 2006, including the Jeep Liberty and Wrangler, as well as the Dodge Viper. FCA engineers uncovered that the clutch ignition interlock switches use a kind of wire that was part of a previous recall campaign. Because of this, the company said that affected vehicles may not start, although in rare cases, "if recommended starting procedures are not followed," the affected vehicles may lurch forward after turning the key. Those recommended starting procedures "include activating the parking brake, placing the shift lever in neutral and pressing the clutch pedal before turning the vehicle's ignition key." Recall number two affects the company's 2015 Ram ProMaster City cargo and passenger vans. Owners will need to report to dealers to have a piece of tape removed from the side-curtain airbags. The tape is added during assembly and in some cases, may not have been removed. That could prevent the airbags from deploying in the event of a crash. Just under 59,000 vehicles are included in the first recall, including 43,874 in the United States, 11,309 outside of North America, 2,944 in Canada and 706 in Mexico. The ProMaster City recall includes just over 3,900 vehicles. FCA claims it's unaware of any injuries, fatalities or accidents related to either recall and will perform repairs free of charge. Scroll down for the official press release on both campaigns. Related Video: Statement: Clutch Ignition Interlock Switch April 23, 2015 , Auburn Hills, Mich. - FCA US LLC is launching a voluntary recall of an estimated 43,874 older-model U.S.-market cars and SUVs equipped with manual transmissions. The Company will replace their clutch ignition interlock switches at no charge to customers. The action follows an investigation by FCA US engineers that discovered these vehicles are equipped with switches that contain a certain type of wire implicated in a previous campaign. The wire, which was temporarily substituted by a supplier for the specified material, may break. As a result, the vehicles may not start, and in rare cases – if recommended starting procedures are not followed – a vehicle may exhibit unintended movement when its ignition key is turned. FCA US is unaware of aware of any related injuries or accidents involving this population of vehicles.