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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 Focus ST diesel estate in track showdown with Focus ST hatch

Diesel hot hatches are still a concept that's gaining ground. Obviously, there are none for sale in the US, but European buyers have the choice of at least the Volkswagen Golf GTD and Ford Focus ST Diesel. What better way to find out how the new, high-performance oil-burner really stacks up than for Ford to stage a race against the gasoline-fueled Focus ST? On paper, the ST Diesel is at a big performance detriment here. Its 2.0-liter turbocharged four-cylinder makes 182 horsepower and 295 pound-feet of torque compared to 247 hp and 266 lb-ft for the gas version in this race. However while not a factor for this race, the oil-burner does offer better fuel economy and produces less CO2, which makes a difference for European buyers. Ford skews the race results by giving the ST Diesel Estate a two-second head start for this one-lap battle around the Castle Combe Circuit. Also, this is a video from the Blue Oval, which is going to further minimize the appearance of weakness for its vehicles. Still, both STs really get to show off their strengths, and it's worth seeing how the sibling rivalry shakes out at the finish line.

eBay Find of the Day: 25-station video gaming trailer w/ bonus Ford F-250

Why, you might be asking yourself, is Autoblog showing me an eBay Motors listing for a 2006 Ford F-250 and a box trailer (with a badly cropped photo to boot)? It's not because we're highly interested in this blue-collar rig, to be sure, but rather because we're interested in throwing the greatest Forza party of all time. Housed in that innocuous white 26-foot trailer is a gamer's delight, with 25 Xbox 360 systems connected up to 25 high-definition monitors and 24 headsets to keep everyone locked into the action (one of the stations is outside the trailer). When connected up to one of two included generators, the setup allows for two-dozen combatants to square off, back-to-back and head-to-head. Sure, the Buy It Now price of $79,000 seems steep considering the trailer will need about ten grand worth of Xbox One or Playstation 4 upgrades in the near future. But that doesn't mean you couldn't squeeze out a few more years of massive multiplayer fun. Check out the listing here, and do let us know if you buy it, we'd love to come over and game. Featured Gallery Video Game Trailer: eBay Find of the Day News Source: eBay Motors Toys/Games Ford Auctions forza motorsport xbox xbox 360 ford f-250 autoblog black