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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.

2014 Saleen George Follmer Edition Mustang debuts at Lagun Seca

Saleen used the occasion of the race-fueled Rolex Monterey Motorsports Reunion at Mazda Raceway Laguna Seca to announce its new Heritage Collection Lineup. The event was punctuated with the debut of the collection's first member, the 2014 Saleen George Follmer Edition Mustang.
Follmer's name will likely sound familiar to fans of American racing in the 1960s and '70s. The driver competed in Formula One with the Shadow team in 1973, ran the Indianapolis 500, was the Can-Am champion in 1972 and drove stock cars in NASCAR's Winston Cup as well. The multi-disciplined driver is now one of three -the other two being Mark Donohue and Swede Savage - with the honor of upcoming, limited edition Saleen-tuned vehicles..
Follmer's name will likely sound familiar to fans of American racing in the 1960s and '70s.

Ford exec downplays idea of aluminum-intensive cars

Ford certainly made waves when it rolled out the all-new 2015 F-150 made primarily out of aluminum. But while trimming weight off its vehicles is a top priority for the Detroit automaker, we shouldn't expect the lightweight metal to be used as widely on passenger cars as it has been on its new pickup. Speaking at the Automotive News World Congress on Wednesday, top Ford exec Joe Hinrichs said that using aluminum in passenger cars isn't as beneficial as it is in trucks – primarily because the weight savings isn't as dramatic, or as deeply needed. Though improved fuel economy is certainly one advantage of aluminum construction in a truck like the F-150, low prices at the pump have prompted Ford to highlight another advantage, and that's capability: With less weight on its own, a lighter-weight truck can carry and tow more than a heavier one, because it all comes down to combined weight ratings. Ford is expected to make the new F-Series Super Duty largely out of aluminum for the same reasons, and we wouldn't be surprised to see the next Expedition use the material as well. But while certain components in Ford passenger cars will be made of aluminum, we shouldn't expect entire chassis and bodywork assemblies to use the material as extensively as on the F-150, or on more upscale passenger cars from the likes of Audi or Jaguar. Dearborn is, however, investing in other lightweight materials. It has a joint venture with Dow Chemical to put carbon fiber into mass production, much as BMW has with its i3. The Blue Oval will use a combination of carbon and aluminum on its 2017 GT supercar, and it has stripped weight by removing amenities from the 2016 Mustang GT350R, but apparently neither is a method Ford can practically apply to its volume models. Related Video: Featured Gallery 2015 Ford F-150 View 36 Photos News Source: TheDetroitBureau.com, Automotive News - sub. req.Tip: Ford Green Ford aluminum joe hinrichs