1970 Fiat 500l on 2040-cars

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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.

Fiat previews production 500X on Melfi assembly line

The Fiat assembly plant in Melfi, Italy, may not be one that appears on our radar that often. It's been in operation since 1993, but until recently only built the Punto - a model that's been around in its current form with few modifications for the better part of a decade, but hasn't warranted the transatlantic voyage to American showrooms. Fiat recently added to the Punto assembly line in Melfi the production of the new Jeep Renegade, but that's not all.
Soon the Renegade (which you can see being built in the background of the image above) will spawn the 500X, a small crossover based on the same platform but with what you can see will be a more rounded shape. Replacing the Sedici (a.k.a. SX4) that was jointly developed with Suzuki, the 500X will join the Cinquecento family alongside the 500 hatch, 500C convertible and 500L minivan, the latter on whose design we hope the 500X will prove a marked improvement.
Expect the 500X (or so it's expected to be called) to be revealed on July 4, which will mark not only the 238th anniversary of the US Declaration of Independence but also the 57th anniversary of the original 500's debut.

Maserati planning second smaller SUV?

Maserati's product plans have taken a few wild turns, but as we get closer to production dates for the long-awaited offerings things are getting a wee bit clearer. The the sixth-generation Maserati Quattroporte is here, and a quick recap according to a report in Car and Driver has the smaller Ghibli sedan on Chrysler's LX/LY platform next, then the next-generation GranTurismo coupe and cabrio on a Maserati platform, then the Kubang SUV concept (pictured) that, for production, will become the larger Jeep-Cherokee-based Levante SUV.
All of which gets us to 2015. That same year, according to the report, the Levante will get a brother: a smaller SUV or crossover, perhaps sized like the Kubang concept, to challenge the Audi Q5 and the Porsche Macan. It is predicted to use the Compact US Wide platform, built for front-wheel and all-wheel-drive vehicles, that supports the Dodge Dart and 2014 Alfa Romeo Giulia. In addition to giving the premium brand a competitor in what is a very popular segment, a Maserati move slightly downmarket can help fill a gap while Fiat brass figures out what to do with Lancia.