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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 Escort returns... as a concept

Ford is kickin' it old school at the Shanghai Motor Show for 2013 with a new Escort Concept - "a name that stirs up thoughts of basic, affordable transportation rather than great driving dynamics or bold design" as we said in our initial preview of the small C-segment sedan. Or, as Ford puts it, "Customers in China described seeking a vehicle that is stylish - but not one that is arrogant or pretentious." Potato, potahto...
It's an interesting amalgam of design notes with Ford's recent and stylish hexagonal grille up front, flanked by some pretty busy LED light clusters and chrome-trimmed air intakes at the lower extremities of the fascia, but the Escort Concept is not altogether unattractive. Besides its external appearance, we really don't have much information to report - Ford has not yet hinted at what may be powering this little machine, but we'd expect something with four cylinders and less that 2.0 liters of displacement sending a modest number of horses to the front tires.
It probably goes without saying, but we don't expect to see this Escort make its way to the United States, since we already have the Focus and the Fiesta battling it out in the econobox segment. That said, it's very likely to spawn a production model that will roll out here in China and in other developing market where multiple C-segment entries are becoming increasingly common. Check out our high-res image gallery of live images above, and let us know what you think of the car's styling, then scroll down below for the official press release.

Ford and OMS bring military ride-and-drive program to Hockenheimring

This post is appearing on Autoblog Military, Autoblog's sub-site dedicated to the vehicles, aircraft and ships of the world's armed forces. It kind of goes without saying, but joining the military means you won't be enjoying quite as much leisure time as members of the civilian world. That said, when a chance to let your hair down does come along, servicemembers usually enjoy some very unique opportunities... like driving a new Ford Mustang and F-150 around Germany's Hockenheimring. Ford and the Overseas Military Sales Corporation, the on-base retailer for the Blue Oval and the same outfit that worked out a raffle program for servicemembers to purchase the limited-edition 50th Anniversary Mustang, put together the ride-and-drive program at Germany's second most famous circuit. The OMS allows military men and women to purchase vehicles for both on-base use and for pickup when they arrive back in the United States. "The Ford Driving Freedom ride-and-drive event is designed to introduce the new 2015 Ford Mustang and F-150 to military personnel who are stationed on US bases across Europe," Ford fleet sales manager Doug Walczak said in the attached statement. "It's the first time such an event has been held overseas." According to Ford, over 300 servicemen and women applied to take part in this pilot program, which was more than double what Ford and OMS had room for. With such an impressive response rate, it's no surprise that similar events could come to other US bases. Scroll down for the official press release from Ford. U.S. Military Personnel Take Ford Mustang, F-150 for a Ride at Hockenheimring Racetrack · Ford and the Overseas Military Sales Corporation host first-ever Ford Driving Freedom ride-and-drive event for U.S. military personnel stationed on bases across Europe · U.S. military personnel got the unique opportunity to drive the Ford F-150 and Ford Mustang on Hockenheimring racetrack in Germany · Ford has worked with Overseas Military Sales Corporation since 1995 to offer Ford and Lincoln vehicles for sale throughout the Americas, as well as in Europe, the Middle East and Asia, as well as on select Navy ships HOCKENHEIMRING, Germany, June 9, 2015 – Members of the U.S. military got the unique opportunity to take a test drive of the Ford F-150 and Mustangtoday at Germany's famed Hockenheimring racetrack.