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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.

Chrysler recalls 350k vehicles over ignition switches

Chrysler has announced a recall covering 349,442 vehicles due to ignition switches that can either become stuck or move without warning. All of the affected vehicles are from the 2008 model year, and were built before May 12, 2008.
The automaker has learned that ignition keys on some vehicles "may not fully return to the 'ON' position after rotation to the 'START' position during engine-startup," the company said in a statement. Additionally, "an ignition key may not fully return to the 'ON' position after rotation to the 'START' position and may inadvertently move through the 'ON' position to 'ACCESSORY' or 'OFF.'"
Chrysler says it is unaware of any related injuries, and notes that while reduced braking, engine or steering power is possible in such instances, the airbags are not affected. The later stands in contrast to General Motors' recent rash of high-profile recalls, and it's an important distinction that Chrysler (understandably) felt necessary to call out in bold print in its press release.

Chrysler's Hurricane engine detailed ahead of 2016 launch

We've been hearing distant rumblings about Chrysler's new Hurricane engine for some time now, but details have been hard to come by. Now, Automotive News is adding some specifics to the scuttlebutt, citing Chrysler documents. According to the industry publication, the Hurricane will blow onto the scene in 2016, but it's not an all-new engine. Rather, it will be rooted in the company's existing 2.0-liter four-cylinder Tigershark powerplant (shown above), albeit with "many new technologies to achieve excellent fuel economy."
It's not clear what sort of technologies Chrysler is referring to, but the Hurricane is expected to continue to use an aluminum block, and the finished product is expected to generate even better figures than the existing 2.0-liter's 160 horsepower and 148 pound-feet of torque (as found in the Dodge Dart). Automotive News notes that the updated 2.4-liter Tigershark debuting in the entry-level 2014 Jeep Cherokee has its basis in the 2.0-liter lump, but unlike the smaller engine, it's been fitted with MultiAir2 electrohydraulic variable valve timing to realize 184 hp and 171 lb-ft and greater efficiency.
Perhaps the Hurricane will incorporate the latter in its bag of tricks? Either way, we're hoping for a more generous torque curve than the what's in the current 2.0-liter Tigershark, which is something of a slug in the Dart - even for a base economy compact.