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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.

Dog sent packing after eating owner's $130,000 Aston Martin

When is Man's Best Friend not really Man's Best Friend? As a Somerset, England man found out, it's when she's taking a few bites out of your $130,000 Aston Martin. Royston Grimstead left his home one morning, only to return to find the wheel arch of his British convertible chewed to bits, courtesy of one of his dogs. Luce, the four-year-old Border Collie/Spaniel mix guilty of the damage, may have had motive, according to Grimstead. According to the 42-year-old man, he was already trying to find a new home for the adorable dog, claiming it didn't get along with his other canines. "She must have overheard me because she's normally friendly and never really chewed on anything before," Grimstead said. Luce has found a new home, and according to the Bridgwater Mercury, Grimstead's insurance will cover the damage. Hopefully, Grimstead has now learned a valuable lesson from all of this: Always take the Aston Martin to work. News Source: Bridgwater MercuryImage Credit: Bridgwater Mercury Auto News Aston Martin Luxury Performance

Weekly Recap: New bosses try to jump-start Cadillac and Lincoln

Both of America's domestic luxury brands seem to be stuck in neutral.
It's ironic that Cadillac and Lincoln got new bosses within days of each other this month. It's also a commentary on the fact both of America's domestic luxury brands seem to be stuck in neutral.