Bloomberg: FCA Banking Unordered Vehicles, Pressuring Dealers
A Bloomberg report accuses Fiat Chrysler of creating a ‘sales bank’ of up to 40,000 new vehicles, reviving an old practice that could stoke tension among dealers and investors.

Bloomberg reports an overstock of 5,000 Fiat Chrysler vehicles at the end of the third quarter was the balance of a “sales bank” that held as many as 40,000 units earlier this year.
Photo courtesy Fiat Chrysler Automobiles
(Bobit) — Fiat Chrysler Automobiles has resurrected the practice of “sales banking,” at one point amassing a total of 40,000 unordered cars and trucks and putting undue pressure on U.S. dealers to stock and sell them, according to a Bloomberg report.
The existence of a sales bank would likely unnerve investors and analysts. FCA recently announced a merger agreement with France’s PSA Group, home of the Peugeot, Citroën, andOpel marques, among others. Bloomberg’s Gabrielle Coppola notes Chrysler is known to have overproduced in the late 1970s and at the outset of the Great Recession, when the company was seeking merger partners and would accept federal bailout funds to remain in business.
Read: FCA, PSA Reach Tentative Merger Deal
“While the company is nowhere near that sort of trouble — it just reported record quarterly profit — the surging supply of unassigned vehicles coincided with a period when the company was pursuing mergers,” Coppola writes.
“We’re producing pre-specificationed vehicles against predicted demand so the right vehicles are available when dealers need them.”
FCA’s global chief communications officer, Niel Golightly, claimed the overstock, which had dwindled to 5,000 units by the end of the third quarter, was the result of new and more accurate analytics-based modeling.
“We’re producing pre-specificationed vehicles against predicted demand so the right vehicles are available when dealers need them,” Golightly told Bloomberg.
Coppola notes that Lee Iacocca, the recently departed former CEO of Chrysler who led the company through its 1979 bailout and 1980s revival, was known to despise the practice, which he described in his autobiography as “nothing more than an excuse to keep the plants running when we didn’t have dealer orders for the cars.”
Originally posted on Auto Dealer Today
More Showroom

Affordable, Safe Cars for Teen Drivers
Families looking to balance affordability and safety in vehicles for their teen drivers can look to the updated list of recommended vehicles by IIHS and Consumer Reports.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
Holman Opens Porsche Dealership in Miami
The North Miami store features the brand’s signature Destination Porsche design concept, combining contemporary architecture and technology to create what the auto group calls an ultra-luxury experience.
Read More →
Chicago to Gain Cadillac Rooftop in 2027
The two-story Cadillac dealership is being constructed at the former Lincoln Yards site, owned and operated by Canada-based Jack Carter Auto Group.
Read More →
Mid-Atlantic Ford Store Has New Owner
A growing Maryland automotive group is only the 93-year-old dealership’s third owner after its longtime proprietors retired.
Read More →
Porsche Dealership Breaks Ground in Illinois
Barrington Porsche will be the new location for Murgado Automotive Group’s existing Porsche dealership currently in the Motor Werks of Barrington auto mall.
Read More →
Michigan Auto Group Acquires Ohio Rooftops
Feldman Automotive Group added two new brands, Honda and Toyota, to its portfolio with its latest acquisition of four Fireside dealerships in Ohio.
Read More →
California VW Dealers Go After Scout
The franchisees’ state-level actions follow a California auto dealers trade group lawsuit against the VW affiliate last year, both efforts to stop the EV maker’s plan to sell direct to consumers.
Read More →
EVs Gain Traction in Europe
First-quarter auto sales increased as more consumers took advantage of government incentives. Hybrid deliveries are leading the way on the electrifieds boom.
Read More →
California Holds EV Lead Despite Annual Decline
At nearly 14%, California had the lowest zero-emission vehicle market share in the first quarter since the fourth quarter of 2021, according to the California New Car Dealers Association.
Read More →