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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.

Ford Focus ST, Fiesta ST buyers to get free Octane Academy driving school

The Ford Focus ST and Fiesta ST have created plenty of excitement in the sport compact segment, and Ford is looking to make sure that owners are driving and enjoying their cars to the best of their abilities. As an added bonus for buying one of these sporty hatchbacks, Ford will provide a complimentary ST Octane Academy session to be held at the Miller Motorsports Park in Utah.
Attendees will be responsible for travel and lodging, but Ford will provide the driving school free of charge. Included in this two-day trip, ST owners will get class instruction and driving instruction in prepped Focus ST and Fiesta ST models on the track and autocross course. Some karting action will also be involved as will a tour of Ken Block's Hoonigan Racing headquarters located nearby. If this doesn't sound like enough fun, there is also an optional day of activities that includes some more track time in a Mustang GT and off-road instruction in an F-150 SVT Raptor.
Ford told us that those who have already purchased a Focus ST or Fiesta ST will still be able to attend the performance driving school, but the press release, which is posted below, makes it sound like it applies to original owners only. Ford has yet to announce its schedule for the ST Octane Academy or prices for additional activities or guests.

Ford to auction Mustang Cobra Jet prototype for charity [w/video]

Prototypes developed by major automakers typically remain in said company's custody, but every once in a while, one trickles out into private hands. And that's just what we have here. Ford is donating a one-of-a-kind factory prototype for the 2014 Mustang Cobra Jet that will be auctioned off later this month by Barrett-Jackson in Las Vegas to benefit the National Multiple Sclerosis Society.
Powered by a 5.0-liter supercharged V8 mated to a T4 competition gearbox, this rare Cobra Jet prototype includes a wheelie bar, chromoly roll cage, Weld wheels, three-link rear suspension, racing brakes, 9-inch rear axle and more. It's painted in a unique satin orange with reflective gray striping scheme, bears the serial number 2014 BJMS CJXX1 and is fully ready for NHRA competition on the drag strip.
To be offered with no reserve on Saturday, September 28, 2013, the Cobra Jet prototype's winning bidder will also receive tutelage at Roy Hill's Drag Racing School in Sophia, NC, along with tours of the Ford Product Development Center, Ford Racing headquarters and Ford Design Studios with Mustang chief engineer Dave Pericak. Scope out the video and details below for what could be the ultimate Mustang experience for a good cause.