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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, Samsung shack up to bring regen braking to non-hybrid models [w/video]

Ford must be desperate to get itself ready for the beach this summer because it is really trying to get into shape. Shortly after unveiling the Lightweight Concept that cut the weight of a Fusion down to that of a Fiesta, it's now the rest of the line's turn for improvement. The company is wrapping up a 10-year research project aimed at developing next-gen automotive batteries to improve efficiency.
Ford claims that 70 percent of its lineup will have stop/start tech by 2017. The key to this massive proliferation is its new dual-battery system that combines a lithium-ion battery with a lead-acid one and regenerative braking. The setup works by harvesting braking energy and converting it to electricity. When the vehicle stops, the engine shuts off, but the Li-ion battery has enough juice to keep the accessories running. The engine starts up again as drivers take their foot off the brake. The layout would mean less wasted gas while idling. It's already available on Ford hybrids and is somewhat similar to the i-Eloop capacitor-based system from Mazda.
The bigger challenge is tuning the regenerative braking right. While hybrid drivers may be a little more adventurous, when it comes to getting a hang of regen braking, conventional buyers might not be so open-minded. The systems have a tendency to be a little grabby at first and then taper off at very low speeds. Ford needs to make sure it's just right to avoid turning off buyers.

J.D. Power study identifies top seats for your tush

File under News your fanny can use: The seating systems in the Ford Escape and Edge, the Audi A3, Chevrolet Cruze, Kia Cadenza, Porsche Cayenne and Toyota Tundra received top marks in a new J.D. Power study on seating and seat belt quality and satisfaction. The J.D. Power 2017 Seat Quality and Satisfaction Study asked more than 77,000 new owners and lessees of 2017 model-year cars and light trucks to rate their vehicle's seats and seat belts within the first 90 days of taking ownership. The survey is broken up into seven vehicle segments and scored on total seat problems per 100 within each segment, with awards presented to the seating system supplier. Canadian auto supplier Magna won three of seven first-place awards for its seating systems in the A3, Escape and Edge. Ireland-based Adient got top marks for its seats in the Cadenza and Cayenne. Lear Corp. won for the Cruze, and Avanzar Interior Technologies scored highest for seats in the Tundra. J.D. Power says its study is intended for automakers and suppliers with quality and satisfaction information to be used in developing and marketing seating systems. "But the results are just as interesting to a consumer audience," the company says. "After all, some drivers spend a considerable amount of time behind the wheel, and it's helpful to know which vehicles offer the most comfortable seats for those long commutes." Ain't that the truth. Ford was the only automaker whose seat systems, both manufactured by Magna, received top honors in two segments: the Escape for mass-market compact SUV and the Edge for mass-market midsize/large SUV. J.D. Power says it used 22 attributes to measure seat quality, three measures of seat belt quality and 12 to measure satisfaction. Awards were presented to the seating suppliers. Related Video: Image Credit: Audi Auto News Design/Style Audi Chevrolet Ford Kia Porsche Toyota Safety JD Power seats