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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, Ram in heavy-duty towing spat

Every pickup truck commercial has the brand trying to convince us that its model is the biggest, brawniest vehicle on the block. But Ford and Ram appear ready to really throw down the gauntlet and scrap over the towing figures for their heavy-duty models, and it could potentially end up in court.
The issue revolves around what it means to be best in class. Ford claims that its 2015 F-450 (pictured above) has a max tow rating of 31,200 pounds, compared to 30,000 pounds for the Ram 3500 (right). However, both companies market these heavy haulers as having the top towing in their class. According to Automotive News, Ford is threatening legal action if Ram doesn't back down.
The situation isn't as simple as just comparing the numbers, though. First, the two companies calculate their towing capacities differently. Ram adheres to the SAE J2807 rating, while Ford uses its own internal system. Although, as the company introduces new models, they are certified using the SAE standard. "When an all-new F-Series Super Duty is introduced, it also will use SAE J2807," said Ford to Autoblog in an emailed statement.

Ford recalling 830,000 vehicles to replace side door latches

The Basics: Ford is conducting a recall for roughly 830,000 models. The affected vehicles include the 2013 to 2015 Ford C-Max, 2012 to 2015 Ford Focus, 2013 to 2015 Ford Escape, 2015 Lincoln MKC, 2015 Ford Mustang, and 2014 to 2016 Ford Transit Connect. The recall is focused primarily in Arkansas, Alabama, Florida, California, Arizona, Hawaii, Georgia, New Mexico, Louisiana, Mississippi, Texas, Nevada, Utah, Oklahoma, Washington, and Oregon as the problem mostly affects cars in states with warm weather. The Problem: The pawl spring tab in the side door latch in the affected vehicles could break, preventing the door from latching and could even cause the door to open while driving. Injuries/Deaths: There is one reported injury and one reported accident. The Fix: Dealers will replace the affected cars' side door latches. If you own one: Reach out to your local Ford dealer to schedule a service. Related Video: Related Gallery 2015 Ford Mustang: First Drive View 55 Photos News Source: FordImage Credit: Copyright 2014 Drew Phillips / AOL Recalls Ford Lincoln lincoln mkc