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Autoblog Podcast #393

Episode #393 of the Autoblog Podcast is here, and this week, Dan Roth, Steven Ewing, and Michael Harley talk about Monterey Car Week, the Woodward Dream Cruise and Dodge Charger Hellcat, and the latest round of mid-engine Corvette rumors. Dan also had the chance to speak with Jeffrey Rothfeder, author of Driving Honda, a new book that takes a look inside the automaker. We start with what's in the garage and finish up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the new rundown below with times for topics, and you can follow along down below with our Q&A. Thanks for listening! Autoblog Podcast #393: Topics: Monterey Car Week Jeffrey Rothfeder (Driving Honda) interview Woodward Dream Cruise + Dodge Charger Hellcat Mid-Engine Corvette rumors just won't die In The Autoblog Garage: 2014 Jaguar F-Type V6 S Convertible 2015 Chevrolet Silverado 2500HD 4X4 CNG 2014 Nissan NV200 SV Hosts: Dan Roth, Steven Ewing, Michael Harley Runtime: 02:10:41 Rundown: Intro and Garage - 00:00 Monterey Car Week - 37:08 Jeffrey Rothfeder - 52:17 Woodward 2014 - 01:28:11 Mid-Engine Corvette - 01:44:30 Q&A - 01:56:53 Get the podcast: [UStream] Listen live on Mondays at 10 PM Eastern at UStream [iTunes] Subscribe to the Autoblog Podcast in iTunes [RSS] Add the Autoblog Podcast feed to your RSS aggregator [MP3] Download the MP3 directly Feedback: Email: Podcast at Autoblog dot com Review the show in iTunes Podcasts Rumormill Chevrolet Dodge Jaguar Nissan Pebble Beach mid-engine corvette dodge charger hellcat

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.

The Dodge Challenger 1320 is rarer than the vaunted Demon

Dodge stopped making the 840-horsepower Challenger Demon after the 2018 model year, and it filled the gap the coupe left in its range with a slightly tamer variant called 1320. While it wasn't a limited-edition model, production figures released recently cement its status as a future classic. 1320 references the length of a drag strip, which normally checks in at 1,320 feet, and the name speaks volumes: It was built to go flat-out for a quarter mile. It offered all of the go-fast goodies found in the Demon, including a transbrake, a line lock, an SRT-tuned suspension, plus bigger brakes provided by Brembo, and it swapped the supercharged V8 for a naturally-aspirated, 6.4-liter eight shared with the Challenger 392 and tuned to 485 horsepower. It wasn't quite as quick as the Demon, but it remained a race car barely street-legal enough to put plates on, so it occupied a shallow niche. Dodge made 1,054 examples of the 1320 during the 2019 model year, according to Mopar Insiders. Of those, 1,026 units were sold in the United States, and the remaining 28 stayed in their home country of Canada. As for colors, 232 enthusiasts chose Pitch Black, making it the most popular. At the other end of the spectrum, 13 buyers ordered Maximum Steel, which is the rarest color offered to the public. One 1320 was painted in Yellow Jacket, and another in Billet, but they were pre-production cars. To add context, the firm capped Demon production at 3,300 units, including 300 for the Canadian market. The 1320 is returning for the 2020 model year, so it might ultimately become more common than the Demon, but it remains a rare edition that will turn heads at high-profile classic car auctions in a few decades' time. If you've got one, race it, but pamper it off the track, and hang on to it. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.