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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.

2015 Ford F-150 gets Power Wheels treatment [w/video]

With the introduction of its forthcoming 2015 F-150, Ford is breaking with convention by shifting from steel-intensive construction to aluminum. But what if it weren't made of metal altogether? What if it were made of plastic instead, and packed an electric motor instead of an internal-combustion engine?
Feast your eyes, boys and girls, on the new Power Wheels F-150. Built by Fisher-Price and licensed by Ford, the third-generation ride-on toy started development nine months before the full-size version debuted at the Detroit Auto Show this past January, and is hitting sidewalks and driveways across the country this September.
The Power Wheels F-150 carries a sticker price of $349.99, and there's a special version at Toys R Us with LED headlamps (just like the real F-150) for an extra $10.

Highlights and standouts from the 2015 LA Auto Show

This year's LA Auto Show has been packed with interesting debuts and fascinating industry trends. The Autoblog team is on the scene to examine all the new metal, and Senior Editor Greg Migliore has some show highlights for us in the video above. In particular, the new Fiat 124 Spider and Honda Civic Coupe stand out as important debuts. The Fiat is based on the excellent Mazda Miata, with a turbocharged 1.4-liter engine and revised styling. The Civic Coupe is a striking redesign of an extremely popular and important model for the company. And the restyled Ford Escape looks more like its bigger brother, the Explorer. There's this an much more in our video above. Watch it and let us know what you think – and look for more LA Auto Show coverage coming soon.