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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.

Mysterious small Ford spied in Germany

Our spy photographers have just popped off a few shots of something curious. This little runabout was spotted in Germany out testing with a current-generation Ford Fiesta. We're fairly confident the machine is a Ford, but exactly which Ford model is up for debate. The hatchback could be the next-generation Ka, but we've also heard that the Blue Oval supermini might not get a replacement. Our shooter says the five-door is a bit smaller than the current Fiesta, though there is a chance that this rig is just an engineering mule for drivetrain development. Then again, it could be a model built specifically for the South African market or China, or not a Ford at all.
Whatever it is and wherever it's headed, you can check out in the gallery for a closer look before heading into Comments to weigh in with your best guess.

Ford E-Series chassis cabs and cutaways to survive mass Transit onslaught

In March 2013, Ford announced we'd be getting chassis cab and cutaway versions of the Transit. Since incoming Transit vans will soon be rolling over the grave of the E-Series van, it was assumed that all E-Series models would go six feet under as well. According to a report from PickupTrucks.com, however, that's not the case, the report claiming that the highly modifiable E-350 and E-450 chassis cab and cutaway versions will continue being produced in Avon Lake, Ohio "at least until 2020."
Being decades old, the be-cabbed E-Series platform has found its way under an army of heavy-duty shuttle buses, work truck and ambulances. Ford spokeswoman Jessica Enoch verified the production horizon, telling Autoblog that the particular E-Series configuration "are a higher GVWR than the Transit chassis cab and cutaway (available this summer), which is more Class 2 and a new segment for us." So there you have it.