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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.

Why Edmunds took a sledgehammer to its 2015 Ford F-150

The discussion around repair bills for the aluminum-bodied 2015 Ford F-150 pickup continued from the beginning of last year to the end, and haven't abated; as an aside, some Tesla Model S owners have been shocked at disquieting repair estimates for minor damage to their aluminum wunder-sedans. Edmunds decided to inject some fact into the fray: it bought a $52,000 long-term 2015 F-150 and clouted it with an eight-pound sledgehammer. Twice. The rear of the bedside took the impacts since it couldn't be replaced, it would have to be repaired. To the pickup's credit, the only reason associate editor Travis Langness hit it twice was that the first sledgehammer blow didn't do as much damage as Edmunds wanted. After the second, the visible damage included the two direct impacts, a few creases, and a cracked taillight, so they drove the pickup to Santa Monica Ford to get an estimate, complete with a fictitious story about how the damage occurred and the mercy plea that Langness was paying for the repair out-of-pocket. In Part 2 Langness hits on some of the details with getting the truck fixed, such as the massively expensive taillight and the list of tools Ford recommends dealers have to work on aluminum. But he was promised he'd have his truck back in seven days, and Santa Monica Ford got it back to him in seven days. In Part 3 we get the bill. It's not small, but it's quite a bit less than it could have been if the service manager had charged Edmunds the official labor rate for aluminum. We're not going to spoil it here, so check out the videos above and below for the beginning and the end, and head over to Edmunds for the complete story about how it all happened and some riffing on the repair numbers. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Related Video:

Feds open investigation into Chevy Express, Ford Freestar rust issues

'Tis the season... for road salt. And with that, comes rust. And what does rust bring? Well, for Ford and General Motors, a National Highway Traffic Safety Administration investigation. According to The Detroit News, NHTSA is looking into potential recalls issues with Chevrolet Express vans and Ford Freestar minivans.
The feds have received five complaints that rust has caused leaking fuel filler pipes on 2003 Express vans. Separately, seven complaints have been filed over excessive rust in the rear wheel wells of 2004 Ford Freestar and Mercury Monterey minivans. The Freestar and Monterey went out of production in 2007. Neither issue has resulted in any crashes or injuries, according to the report.