2003 - Ford F-350 on 2040-cars

Auto blog

Why the Detroit Three should merge their engine operations

GM and FCA should consider a smaller merger that could still save them billions of dollars, and maybe lure Ford into the deal. Fiat-Chrysler CEO Sergio Marchionne would love to see his company merge with General Motors. But GM's board of directors essentially told him to go pound sand. So now what? The boardroom battle started when Mr. Marchionne published a study called Confessions of a Capital Junkie. In it, Sergio detailed the amount of capital the auto industry wastes every year with duplicate investments. And he documented how other industries provide superior returns. He's right, of course. Other industries earn much better returns on their invested capital. And there's a danger that one day the investors will turn their backs on the auto industry and look to other business sectors where they can make more money. But even with powerful arguments Marchionne couldn't convince GM to take over FCA. And while that fight may now be over, GM and FCA should consider a smaller merger that could still save them billions of dollars, and maybe lure Ford into the deal. No doubt this suggestion will send purists into convulsions, but so be it. The Detroit Three should seriously consider merging their powertrain operations, even though that's a sacrilege in an industry that still considers the engine the "heart" of the car. These automakers have built up considerable brand equity in some of their engines. But the vast majority of American car buyers could not tell you what kind of engine they have under the hood. More importantly, most car buyers really don't care what kind of engine or transmission they have as long as it's reliable, durable, and efficient. Combining that production would give the Detroit Three the kind of scale that no one else could match. There are exceptions, of course. Hardcore enthusiasts care deeply about the powertrains in their cars. So do most diesel, plug-in, and hybrid owners. But all of them account for maybe 15 percent of the car-buying public. So that means about 85 percent of car buyers don't care where their engine and transmission came from, just as they don't know or care who supplied the steel, who made the headlamps, or who delivered the seats on a just-in-time basis. It's immaterial to them. And that presents the automakers with an opportunity to achieve a staggering level of manufacturing scale. In the NAFTA market alone, GM, Ford, and FCA will build nearly nine million engines and nine million transmissions this year.

Formula Drift kicks off 11th season on Streets of Long Beach

The 2014 Formula Drift series kicked off last weekend in Long Beach, and saw Chris Forsberg, who you'll recall went mad and drifted around a warehouse in an Infiniti M, take the title behind the wheel of his Hankook Tire Nissan 370Z (shown above).
Forsberg really ran away with the first round of competition, outscoring his closest opponent, second-place finisher Kenneth Moen and his Bridges Racing Nissan 240SX, by 20 points. Third place was 2013 championship winner Michael Essa and his Yokohama BMW M3, 30.5 points behind Forsberg.
In the manufacturers' title, Nissan took an early lead with 122 points, which isn't a huge surprise considering five of the top ten drifters were piloting either a Z or a product of the brand's S platform. Ford, which had two drivers (Justin Pawlak and Vaughn Gittin, Jr.) in the top ten, took home second place, while BMW is currently third in the manufacturers' standings.

After Years Of Delays, Rear Visibility Requirements Move Closer To Reality

Regulations that would require automakers to improve rear-view visibility on all new cars and light trucks are nearing completion after six years of delays. The U.S. Department of Transportation sent its proposed rear-visibility rules to the Obama administration for review on Christmas Day. The White House Office of Management and Budget now must finalize the regulations. The rule are intended to minimize the risk of pedestrian deaths from vehicles in reverse, a type of accident that disproportionately affects children. Already in 2014, two children have died from cars backing over them, driven in each case by the children's father. Specifics of the Transportation Department's proposal are not available during the review, but the rules are expected to compel automakers to install rear-view cameras as mandatory equipment on all new vehicles. That's what safety advocates have wanted all along. Thought they were pleased the proposed ruling had finally been issued, there was some worry Friday the final rules would omit the rear-view camera mandate. "We're encouraged, but we're also a little concerned about speculation the rear-view camera may not be in there," said Janette Fennell, the president and founder of Kids and Cars, a nonprofit organization dedicated to protecting children in and around vehicles. "I'm wondering where that might be coming from." On Thursday, The Automotive News had reported the possibility the new standards could offer an alternative to rear-view cameras, such as redesigned mirrors, that improved visibility. The Office of Management and Budget typically completes its reviews of new rules in 90 days, although that can be extended. OMB officials said Friday they do not comment on pending rules. The intent of the rules is to enhance rear visibility for drivers and prevent pedestrian deaths. Approximately 200 pedestrians are backed over in the United States each year, according to estimates from the National Highway Traffic Safety Administration. Accidents Mostly Affect Children Roughly half the victims are children younger than age five. A government analysis concluded approximately half the victims -– 95 to 112 -– could be saved with new regulations. Yet the rules have arrived at a glacial pace. President George W. Bush signed legislation that had been passed with bipartisan Congressional support in 2008. But automakers have fought the idea of adding rear-view cameras, saying it is too expensive.