auto dealer in black and red logo
MenuMENU
SearchSEARCH

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.

Tariq Kamal
Tariq KamalFormer Associate Publisher
Read Tariq's Posts
November 13, 2019
Bloomberg: FCA Banking Unordered Vehicles, Pressuring Dealers

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

2 min to read


(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.”

Read: Industry Leader Lee Iacocca Dead at 94

More Dealer Ops

Auto Dealer Today, Dealer Debrief, 07/15/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 15, 2026

Dealer Debrief: Defection Data & EV Updates

In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Auto Dealer Today, Dealer Debrief, 07/02/2026 with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 2, 2026

Dealer Debrief: Where are you losing customers?

In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 06/25/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJune 26, 2026

Dealer Debrief: Improving Your Inventory Management

In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.

Read More →
group of people standing in a circle holding puzzle pieces together
Dealer OpsJune 1, 2026

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins

A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.

Read More →
Ad Loading...
two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →