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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.

Race Recap: 2014 24 Hours of Le Mans defines 'endurance'

Commenting on the rush of events that rocked beginning and end of the 24 Hours of Le Mans, Paul Truswell of Radio Le Mans said "the race is about the ability to endure, not just the ability of drivers to do what they do for a long time." The entire race machine, all the way down to the pit boards and radios, has to survive the stress and abuse of the entire day. This was the race to prove those words.
There were two Toyotas, two Porsches and three Audis, five of the seven led the race at some point, six of the seven ran in the top three. Toyota will be hugely disappointed that it didn't win when its car and drivers were so, so strong, but they gave Audi the kind of scare we haven't seen since the best of Peugeot's days, and Toyota did a better job of it even in the loss. Porsche blew away everyone's expectations, falling 3.5 hours short of a fairy tale ending that would have made Disney cry.
But Le Mans doesn't really do fairy tales. Well, not that fairy tale. Audi's Twitter handle during the event was #welcomechallenges. As usual, Le Mans answered for the entire field.

Castrol Nexcel is an oil change in a box

Oil changes are a vital part of car ownership. For some this simple bit of maintenance gives them a sense of accomplishment and a closer connection to their car. Others just find it a hassle. Castrol might have a compromise with new tech called the Nexcel that packages the oil and filter into a single, easily removable container. The company claims switching the unit out takes just 90 seconds. Instead of draining the oil for a regular change, the whole Nexcel is replaced each time. Castrol then retrieves the used containers and recycles the fluids inside into other lubricants. The exclusive cadre of ultra-wealthy buyers for the track-only Aston Martin Vulcan get to be the first ones to find out if the Nexcel lives up to the hype. And don't worry, the container can reportedly stand up to the hypercar's punishment. According to Castrol, the Nexcel has been tested to perform at up to 1.8G and can flow as much as 158.5 gallons of oil a minute. The tech also allows Castrol to create specific oil blends to match to different engines. "Today, you can't guarantee the right oil will be used, so the degree to which oils can be tailored is limited. Nexcel is different and can go further. The oil cell enables a concept we call precision lubrication," a spokesperson said to Autoblog. Assuming the Nexcel is a success, Castrol estimates that it could arrive in the first road car in about five years. The company already claims to be in discussions with "several" automakers about potentially implementing the tech. While changes would be far quicker, some enthusiasts might balk at the idea of being locked into oil from just a single brand, though. CASTROL REINVENTS OIL CHANGE WITH NEXCEL: THE REVOLUTIONARY TECHNOLOGY THAT MAKES OIL CHANGES QUICK, SMART AND SIMPLE The Nexcel oil cell, an easy-to-change unit containing both engine oil and filter delivers superior engine performance and improved environmental sustainability The new technology allows your oil to be changed in around 90 seconds, more than 13 times faster than a conventional oil change of 20 minutes The Aston Martin Vulcan track-only supercar will be the first vehicle featuring Nexcel technology LONDON, Thursday 8th October 2015 – Today, Castrol launches Nexcel, a new revolutionary technology that marks the most significant oil change innovation in automotive history.