1968 Ford Mustang Gt Fastback Project Car 4spd on 2040-cars

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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.

Ford Recalls Nearly 435,000 Vehicles

Ford is recalling nearly 435,000 cars and SUVs to fix rusting frame parts or faulty seats. The biggest of the two recalls covers nearly 386,000 Ford Escapes from the 2001 through 2004 model years. Ford says the subframes can rust, allowing a control arm to separate and hamper steering control. Ford is aware of one crash but no injuries linked to the problem. The SUVs were originally sold or registered in 20 states and Washington, D.C., where salt is used to clear snow and ice from roads. Six Canadian provinces also are included. Dealers will install a reinforcement brace to fix the problem. The Escapes covered by the recall were built from Oct. 22, 1999 through Dec. 19, 2003 at the Kansas City Assembly plant, and from May 1, 2003 through Jan. 23, 2004 at the Ohio Assembly plant, Ford said in a statement issued Monday. They were originally sold or registered in Connecticut, Iowa, Minnesota, Ohio, Wisconsin, Delaware, Maine, Missouri, Pennsylvania, Maryland, New Hampshire, Rhode Island, Illinois, Massachusetts, New Jersey, Vermont, Indiana, Michigan, New York, West Virginia and Washington, D.C. Also covered are Escapes sold or registered in Ontario, Quebec, Prince Edward Island, New Brunswick, Nova Scotia, and Newfoundland & Labrador. The second recall covers 49,000 Ford Fusion, Lincoln MKZ, Ford Escape and C-MAX vehicles from 2013 and 2014. Dealers will replace seat back frames that weren't welded properly. No crashes or injuries have been reported from the problem, Ford said. Recalls Ford

NHTSA closes investigations into Ford Taurus, Hyundai Santa Fe

Ford and Hyundai are out from under the scrutinizing eyes of the National Highway Traffic Safety Administration after the government agency said it was closing investigations against both automakers over vehicle safety concerns.
Ford was being investigated for reported damaged speed control cables on Ford Taurus (shown above) and Mercury Sable models, both built between 2000 and 2003. Vehicles with the company's Duratec engines allegedly failed to allow owners to brake as expected. Owners lodged 100 complaints and were involved in five accidents, according to NHTSA records. The American automaker responded to the reports, and on June 21 of this year, said that it would inspect and repair all affected vehicles, regardless of the mileage.
Hyundai was under investigation for a reported loose fastener on the steering shaft of its 2011 Santa Fe (shown in the gallery below). After NHTSA launched its inquiry, the Korean automaker responded with its own investigation that yielded four affected vehicles. Following the inspection of 680 vehicles at its assembly plant, Hyundai said the issue was due to employee error and that no further defects have been found.