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Why the Detroit Three should merge their engine operations

GM and FCA should consider a smaller merger that could still save them billions of dollars, and maybe lure Ford into the deal. Fiat-Chrysler CEO Sergio Marchionne would love to see his company merge with General Motors. But GM's board of directors essentially told him to go pound sand. So now what? The boardroom battle started when Mr. Marchionne published a study called Confessions of a Capital Junkie. In it, Sergio detailed the amount of capital the auto industry wastes every year with duplicate investments. And he documented how other industries provide superior returns. He's right, of course. Other industries earn much better returns on their invested capital. And there's a danger that one day the investors will turn their backs on the auto industry and look to other business sectors where they can make more money. But even with powerful arguments Marchionne couldn't convince GM to take over FCA. And while that fight may now be over, GM and FCA should consider a smaller merger that could still save them billions of dollars, and maybe lure Ford into the deal. No doubt this suggestion will send purists into convulsions, but so be it. The Detroit Three should seriously consider merging their powertrain operations, even though that's a sacrilege in an industry that still considers the engine the "heart" of the car. These automakers have built up considerable brand equity in some of their engines. But the vast majority of American car buyers could not tell you what kind of engine they have under the hood. More importantly, most car buyers really don't care what kind of engine or transmission they have as long as it's reliable, durable, and efficient. Combining that production would give the Detroit Three the kind of scale that no one else could match. There are exceptions, of course. Hardcore enthusiasts care deeply about the powertrains in their cars. So do most diesel, plug-in, and hybrid owners. But all of them account for maybe 15 percent of the car-buying public. So that means about 85 percent of car buyers don't care where their engine and transmission came from, just as they don't know or care who supplied the steel, who made the headlamps, or who delivered the seats on a just-in-time basis. It's immaterial to them. And that presents the automakers with an opportunity to achieve a staggering level of manufacturing scale. In the NAFTA market alone, GM, Ford, and FCA will build nearly nine million engines and nine million transmissions this year.

Ford recalls 2017 Lincoln Continental for headlight problem

Ford Motor Co. is already recalling the 2017 Lincoln Continental for a headlight problem, the automaker announced Tuesday. The HID headlights may have been assembled with LED lens that don't have the correct lens optics to meet federal visibility requirements for turn signals. Ford says it is unaware of any accidents related to the issue. The company will replace the headlamp assemblies, if needed. The safety compliance recall covers 1,876 Continentals built from June 14 to Sept. 23 at Ford's Flat Rock factory south of Detroit. Most of the cars are in the United States; 49 are in Canada, and one is in a federalized territory. Only about 300 cars are in consumers' hands, a spokesperson said. Customers can use a Lincoln service program where dealers will pick up their Continental, fix it for free, and return it, the spokesperson said. Lincoln has high hopes for the Continental. The flagship sedan uses one of Lincoln's most iconic names and features a luxurious interior, available 400-horsepower V6 engine, and safety features like adaptive cruise control and a 360-degree camera. Lincoln recently announced an elaborate marketing campaign shot by renown photographer Annie Leibovitz to generate interest in the Continental. In a separate recall, Ford also said Tuesday that 60 Edges from the 2015-16 model year are being recalled to update their antilock braking system module. Related Video: Featured Gallery 2017 Lincoln Continental Campaign View 12 Photos Recalls Ford Lincoln

Lincoln MKC recalled because start button located too close to touchscreen [UPDATE]

UPDATE: Ford spokesperson Kelli Felker responded to our questions and let us know that the fix for the push-button start on the 2015 MKC has the switch moved to the top of the of the column of gear shift buttons instead of the bottom. Owners should be notified about both campaigns "toward the end of February." After massive campaigns from General Motors and to fix Takata airbag inflators, 2014 will undoubtedly go down as The Year Of The Recall. And with little time to spare, Ford is getting in just under the wire to adding two more to its yearly total. The larger of the campaigns is actually one of the most bizarre campaigns we've heard of all year. Lincoln is recalling 13,574 units of its 2015 MKC compact crossover in North America to move the location of the push-button ignition switch on the dashboard. According to the automaker's announcement: "Due to the switch's close proximity to other controls, occupants are inadvertently shutting off the engine while driving." The button is located near the bottom of the touchscreen, which can apparently make it possible to hit by mistake. Back when Autoblog first drove the new MKC in June, we came away very impressed, but noted: "... we're still not completely sold on the aforementioned pushbutton transmission selector ... it still seems somewhat gimmicky and it can't be operated by feel alone, as you might when shifting a traditional console-mounted lever from Park to Drive." According to Lincoln, there have been no reported accidents or injuries stemming from this button misapplication. Of the affected vehicles, there are 11,144 in the US, 2,033 in Canada and 397 in Mexico. To fix the problem, dealers are moving the button to a different location and reprogramming the powertrain control module. According to Automotive News, models built since September already have a different layout. The change was reportedly done to match the rest of the Lincoln lineup. The second recall covers 12,205 units of the 2014 Ford Escape (2015 model year pictured below) and 2015 Lincoln MKC in North America because of a problem with nickel plating on the fuel pump. The issue can cause the pump to seize, which can cause the crossovers not to start or stall while driving. The automaker is not aware of any accidents or injuries related to this fault. Dealers are replacing the fuel deliver module to fix the situation. Of the affected vehicles, there are 9,038 in the US, 3,074 in Canada and 93 in Mexico.