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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 1.0L takes third-straight International Engine of the Year award

Ford's 1.0-liter EcoBoost is proving to be The Little Engine That Could, and it continues to acquit itself well, finding favor as one of the best powerplants in the world. To confirm it yet again, the tiny mill just won the International Engine of the Year award for the third year in a row, likewise also nabbing the title in the Sub 1.0-liter category.
Packing 123 horsepower and 148 pound-feet of torque with overboost (125 lb-ft normally), the tiny engine combines impressive power in a size small enough to be a carry-on item for a commercial flight. US buyers only got a taste of the award winner in the 2014 Fiesta, while the 1.0 EcoBoost has been available throughout the Ford lineup in Europe for a few years now. American sales have reportedly been strong, however, and next up in the US, the mill will find its way into the 2015 Focus.
The panel of 82 jury members from 34 countries also named the Mercedes-AMG 2.0-liter turbo found in the A45, CLA45 and GLA45 AMG models with 355 hp and 332 lb-ft as the best New Engine for 2014. The electric powertrain from Tesla won Green Engine prize, and the 4.5-liter V8 from the Ferrari 458 Italia took home the honor of top Performance Engine yet again. You can check out all the winners below, and scroll down further to read Ford's celebratory announcement of its award.

Carfection looks for the ultimate pocket rocket

If there's one thing we love, it's a good showdown. Especially when it's on video, done by some Englishmen, and involving some manner of performance machinery. Like this latest clip, for example, from Carfection. The team formerly known as Xcar have assembled three very compelling supermini hot hatches: two we can get on our side of the pond, and one we can't. One American, one Frenchman, and one Brit. One cheap, one expensive, and one somewhere in between. They all pack turbo fours, of course, but placed in entirely different packages. There's the evergreen favorite Ford Fiesta ST, the Renault Clio RS 220 Trophy that should have the rest licked, and the retro rocket that is the Mini JCW. And there's only one way to find out which is the best. It's a tough contest, to be sure, but lest you think it all comes down to specifications or which one's the newest, you'll want to think again. Because when it comes to hot hatches, all the electronic gizmos and power boosts in the world can't show up a perfectly dialed-in chassis that lets you hug the curves and feel like you're going a lot faster than you actually are. But don't take our word for it – see what our British friends have to say about it in the Queen's English in the seventeen-minute clip above. Related Video: