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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.

Movie Review: Spectre

I had only been sitting for two minutes in the screening of the twenty-fourth installment of the James Bond franchise, Spectre, before I met a fanatic. Sporting a James Bond 40th Anniversary Omega Seamaster ("number 007 of only 1007 made", he told me, beaming with pride), he boasted of his travels to the Furka Pass in Switzerland, to visit the location of the Goldfinger car chase, and of his Silver Birch Aston Martin DB5, the same car Sean Connery piloted around those treacherous roads just over fifty years ago. He bought it a while back for $125,000, and foolishly sold it a few years later for $160,000 (a mint 1965 DB5 will easily fetch over $1 million at auction today). The discussion of his Aston Martins continued, including his current Vantage and DB9, until the theatre started to fill up and the lights went down. This kind of automobile and movie culture is unique to Bond. 007 may have his signature drink, "shaken, not stirred," but just as famous are his cars, which, for a great number of films, are Aston Martins. This started fifty years ago, in the aforementioned Connery flick, Goldfinger, and the tradition has continued in Spectre, with a bespoke two-door coupe fittingly tagged the DB10. This latest Bond car is more concept than production. Built around the current V8 Vantage VH platform, the DB10's handsome styling is a look into the future for the British manufacturer. Perhaps outshining Bond's chariot are the cars of the villainous organization after which the movie is named, a highlight being the beautiful the Jaguar C-X75, driven by the eye-gouging villain, Hinx (Dave Bautista). The Jag is introduced when Bond infiltrates a Spectre meeting. His attendance doesn't go unnoticed, leading to a C-X75 vs DB10 race around Rome's midnight streets. Those who are going to see Spectre for the great car cinematography, prepare to be disappointed. The scene ends early on when – spoiler alert – 007 dumps the DB10 in the bottom of a river. Spectre is the longest of the 24-film canon, and due to an overstuffed second act, it feels like it. The first hour is fantastic, revealing enough of Bond's backstory to get the audience hooked, but somewhere in the second act we lose our way, torn between two predictable story lines.

Aston Martin DBS Superleggera Volante is coming soon for $329,100

You've seen the coupe and read the reviews. You've seen the spy shots filtering out of the Nurburgring. And now you've finally, digitally and officially, seen the Aston Martin DBS Superleggera Volante. It's exactly what you'd expect — take the DBS Superleggera, keep its twin-tubrocharged 5.2-liter V12 engine and eight-speed automatic transmission, ditch its hardtop in favor of a folding convertible mechanism, add a drop of sunshine and a copious extra dose of wailing exhaust note, stir and enjoy. Aston Martin boasts that the DBS Superleggera Volante's top speed of 211 miles per hour matches that of the coupe and makes it the fastest convertible ever to roll out of Gaydon. Its quoted 0-62 mph time of 3.6 seconds (.02 seconds behind the coupe) and 0-100 time of 6.7 seconds means it's no slouch in the acceleration department, either, despite its quoted dry weight of 4,107 pounds. Fortunately, that heft (375 pounds more than the coupe) is distributed equally over the front and rear wheels. A revised aerodynamics package that includes a front spoiler and airdam, side strakes that are deeper than those of the coupe, a double rear diffuser and a so-called Aeroblade II all combine to deliver 390 pounds of downforce. That's just 6.6 pounds less than the coupe, despite the inherent aero penalty caused by the removal of the roof. It takes just 14 seconds to open and 16 seconds to close the soft top. At 10.2 inches, Aston says the folded roof stack is the smallest in its segment, and the top is offered in eight colors. A twill carbon fiber mesh finish is optional for the windshield surround, as well as the rear tonneau cover. Want one? You'll have to wait for the third quarter of 2019 to order the DBS Superleggera Volante in the United States. And you'll need a check for $329,100.