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Weekly Recap: Marchionne's Manifesto again calls for industry consolidation

Sergio Marchionne isn't taking no for an answer. Despite public rebuffs from General Motors and Ford, the leader of Fiat Chrysler Automobiles continues to push for consolidation within the auto industry. His latest assertion came Wednesday when he said a combination of FCA with another automaker could net savings of $5 billion or more annually. No, this isn't about selling his company, he claimed, it's about cutting costs. Put simply, the auto industry wastes money, Marchionne said during FCA's earnings conference call. Companies invest billions to develop basic components that all cars use, but many consumers don't care how they work or recognize the differences. "About half of this is really relevant in terms of positioning the car in the marketplace," he said. "The other half, in our view, is stuff which is neither visible to the consumer nor is it relevant to the consumer." In 2014, top automakers spent more than $100 million on product development, FCA estimated. Marchionne said consolidation could save up to $1 billion on powertrains alone, noting that almost every automaker offers four- and six-cylinder engines. Not everyone has to make their own, he contended. "The consumer could not give a flying leap whose engines we are using because they are irrelevant to the buying decision." That's pretty provocative for enthusiasts, but less so for average consumers. Still, there are major differences in power and efficiency ratings, even among similar engines. Skeptics could argue consolidation would also weaken competition and reduce choices for car buyers. Marchionne stressed his presentation, curiously entitled Confessions of a Capital Junkie, wouldn't require closing factories or dealerships. It's not his final "big deal" as CEO, intent to sell FCA, or a way to elevate his company up the automotive food chain. He claims he wants to fundamentally change the industry and its habit for burning cash. "The horrible part about this, and the thing that I find most offensive, is that the capital consumption rate is duplicative," he said. "It doesn't deliver real value to the consumer and it is in its purest form, economic waste." Other News & Notes Ford Profits dip in first quarter Ford profits fell $65 million to $924 million in the first quarter, hampered by slight dips in revenue and sales.

GM says second recalled ignition switch was made in China

The defective ignition switch that led General Motors to recall an additional 3.4 million large sedans earlier this month was manufactured in China, according to a report filed with safety regulators obtained by Reuters. The switches can be knocked out of the run position, much like those affecting the Chevrolet Cobalt and other GM small cars, turning off the engine and safety systems like the airbags. Unlike GM's previous ignition switch recall, though, this latest issue will see dealers simply modify the key rather than replace the ignition switch outright, despite the fact that the switches were "slightly" below torque specifications. If what GM is claiming about this switch's origin is true, it'd mark the second high-profile recall of a part manufactured in China, following Aston Martin's (relatively) huge recall due to faulty accelerator arms in over 75 percent of the cars it had built since 2007. For what it's worth, from our perspective, the link between the Aston plastics and this GM switch seems just a bit too tenuous for us to put a lot of stock in GM's problems stemming from the location of its parts supplier, especially when the related investigation into its corporate culture has resulted in so many other culpable actors. Featured Gallery 2008 Buick Lucerne CXL Special Edition News Source: Reuters Recalls Aston Martin GM Safety supplier gm ignition switch recall gm safety ignition switch

Favorite vehicles of 2017

The Autoblog staff has driven a lot of vehicles in 2017. This video showcases our favorite vehicles from this year, along with some thoughts on why they made the list. Wanna read more head over to https://www.autoblog.com/photos/best-drivers-cars-2017/ Aston Martin Audi Ford Jeep Lexus Porsche Autoblog Minute Videos Original Video porsche macan lexus lc 500 macan wrangler r8 Arts and Entertainment