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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.

We drove the Ford Ranger | Autoblog Podcast #520

On this week's Autoblog Podcast, we discuss our recent trip to New Zealand to drive the global Ford Ranger. As always, we talk about the BMW i3 and a Jeep Wrangler with a whole suite of modifications from Omix-ADA and Rugged Ridge. Finally, we close the podcast with by spending your money. The rundown is below. Remember, if you have a car-related question you'd like us to answer or you want buying advice of your very own, send a message or a voice memo to podcast at autoblog dot com. (If you record audio of a question with your phone and get it to us, you could hear your very own voice on the podcast. Neat, right?) And if you have other questions or comments, please send those too. Autoblog Podcast #520The video meant to be presented here is no longer available. Sorry for the inconvenience.Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Topics and stories we mention Ford Ranger and New Zealand BMW i3 Jeep Wrangler Unlimited Rundown 00:00:00 - Intro/New Zealand 00:11:28 - What We're Driving 00:22:30 - 4th of July Roadtrip Cars 00:30:00 - Spend My Money 00:33:35 - Outro Feedback Email – Podcast at Autoblog dot com Review the show on iTunes Podcasts BMW Ford Jeep

Ford doubling 1.0L EcoBoost engine production

Ford's 1.0-liter EcoBoost three-cylinder engine hasn't been around that long, but it sounds like the engine is getting to be fairly popular in the automaker's global car lineup. The Detroit News is reporting that Ford has add a second shift that will allow its German engine plant to double daily output from 500 engines to 1,000.
The increased capacity is part of a plan to sell more than 300,000 vehicles a year with this engine in Europe by 2015. Europe is currently the only market where the smallest of the EcoBoost engines is offered (including in the Focus pictured above), but US-spec Fiesta models will be getting this mill for 2014.
Three-cylinder engines are expected to continue to grow in popularity in coming years with the report indicating that global production of these engines will double by 2018 to 9.8 million units. General Motors, BMW and Mitsubishi are all expected to introduce three-cylinder engines in the near term, as well.