2007 Ford Explorer Xlt on 2040-cars

Auto blog

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.

Fiat boss Elkann being mentored by... Bill Ford?

Fiat Chairman John Elkann has been turning to an unusual source for advice on the car business. While speaking during an interview with The Detroit News, Elkann said he often asks Bill Ford Jr. for advice on how to proceed with the turnaround at Chrysler. "It's great to have the opportunity to share this with someone like Bill, who has experienced many things and gone through many things ... especially linked to Detroit." Elkann said.
As the Agnelli family heir, Elkann has inherited a long and fruitful friendship with the Ford family. While Giovanni Agnelli built his first Fiat four years before Henry Ford created his first vehicle, it was Ford that showed Agnelli the benefits of mass production and helped pave the way for what would become the Fiat empire.
Giovanni's grandson, Gianni, helped mentor Bill Ford when he was elected chairman of Ford Motor Company. Now, Ford is returning the favor by helping Elkann navigate the automotive industry's tumultuous waters.

2015 Ford F-150 appearance guide takes the truck from mild to wild with options

We already know that the 2015 Ford F-150 has a base price coming in at just $395 more than the 2014 model, despite all of the new standard tech and aluminum-intensive construction in the upcoming version. Now the Blue Oval is finally giving us an idea of what that extra money actually buys customers, with the release of the appearance guide for its latest pickup.
The guide basically explains everything you could want to know about what changes occur among the multitude of trims on the 2015 F-150. There are five levels for the new truck. Although, that is something of a misnomer because most of them are also available with either Sport or Chrome packages, plus the FX4 Off-Road option with Hill Descent Control, an electronic-locking rear axle, off-road shocks and skid plates. With 13 available colors, including 4 new ones, and 14 wheel designs in various sizes, pickup buyers should have no problem specing one to fit their style.
The lineup starts out with the base XL with a black grille and fascia and 17-inch wheels. However, across most of the range the Sport and Chrome packages are also available to add either body-color or chrome accents, respectively. Next up is the XLT with a standard chrome grille but also available with a black, billet-style one with a body-color surround. Things really start getting plush with the Lariat model with leather trim, a three-bar front end and 18-inch wheels. The King Ranch sticks with that look but adds power running boards, 20-inch wheels and two-tone paint. Finally, the top-dog Platinum is all about bling with yet another frontal design, chrome door handles and mirror caps, a big logo running across the tailgate and more.