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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.

Ford Police Interceptors win acceleration war against Dodge, Chevy

Just last month, Ford announced its first-ever non-pursuit-rated version of the Police Interceptor sedan for agencies looking to maximize fuel economy, but that doesn't mean that Ford is giving up on chasing down the bad guys. While the Dodge Charger can lay claim to the fastest lap time at the Grattan Raceway test facility held by the Michigan State Police, the results are now in for the Police Vehicle Evaluation acceleration tests. And Ford's Police Interceptor duo (sedan and utility) came out on top.
In the acceleration tests, Ford says that the Taurus-based PI Sedan with the newly available 3.5-liter EcoBoost V6 was the quickest among prospective police cars in both 0-60 and 0-100 mile per hour times. The sedan posted a 0-60 time of 5.66 seconds with all-wheel drive and 5.71 seconds with front-wheel drive, besting V8-powered competitors like the Chevy Caprice and Dodge Charger by more than 0.3 seconds. These rivals close the gap on the AWD sedan in the 0-100 test with the Ford taking 13.5 seconds compared to the Chevy's time of 14.35 and the Dodge's time of 14.7.
As for utility vehicles, the Explorer-based PI Utility, which accounts for 60 percent of Ford's police vehicle sales, essentially went head-to-head with the V8-powered Chevy Tahoe with similar results. Equipped with the new EcoBoost engine option, this big SUV hit 60 mph in just 6.28 seconds and 100 mph in 15.51 seconds compared to times of 8.22 seconds and 21.95 seconds, respectively, for the Tahoe. Other important tests in the PVE include braking and top speed, but while no automakers have stepped up to boast about their numbers in either of these categories, Ford's images show that the V8 Caprice had the highest top speed of the cars at 155 mph while the Tahoe's 139-mph speed made it the fastest utility vehicle.

Ford looks to space robots to improve car-to-car communications [w/video]

Ford has partnered with St. Petersburg Polytechnic University for three years to research various kinds of connected vehicle communications. The university tie-up is part of its study of space robots, NASA systems created to enable space-to-Earth communication, and the university's own development of systems that enable communication between the International Space State and Earth.
The objective is for Ford to engineer layers of robust networks and redundancy systems that will allow your car to speak to other cars, to emergency vehicles, to infrastructure like traffic lights and buildings, and to the cloud. Benefits would come in just about every area of transit, from avoiding accidents, to getting medical workers to an accident more quickly, to improving the flow of traffic during rush hour.
Check out the press release below for details on what Ford wants to learn from the JUSTIN Humanoid and NASA Robonaut R2, and a video of technical leader Oleg Gusikhin discussing his interest in the project.