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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.

Lincoln Nautilus, Ford Edge latest prediction: Production ends in July 2024

In June, Auto Forecast Solutions put out a report compiled by its vice president of global forecasting, Sam Fiorani. One item in the report covered how Fiorani had heard from "multiple sources" that Ford shut down the program to replace the Edge crossover in 2023. Assuming this came to pass, with the Lincoln Nautilus based on the Edge, the inference is that the Nautilus would retire at or around the same time. Ford's response to media queries about the report was either "No comment" or PR-speak deflection. Lincoln's statement on the matter to Motor1, a crafty non-answer, was, "The Nautilus plays and will continue to play an important role in Lincoln’s growing SUV portfolio which includes the Corsair, Aviator and Navigator. Lincoln is investing in growth segments like SUVs and we have no plans to exit the segment." It's possible Lincoln has no plans to leave the segment, but the Nautilus might, according to a fresh, unsourced report in Ford Authority. The site claims the Nautilus will end production at the Oakville Assembly Plant in Ontario, Canada, in July 2024.  Again, we can't know how much, if any of this, is true. But we're zeroing in on a timeline for the potential end of the Edge and Nautilus in the U.S. Those are the only two products Oakville currently builds, and when the Canadian union Unifor asked Ford about the reports in June, Ford couldn't offer union reps anything concrete or reassuring. The Detroit News quoted Unifor chief Jerry Dias as saying of the automaker, "There is no question, they are going through a major evaluation of their portfolio, based on a whole host of things."   We could be seeing one of the earlier theories for Edge's potential demise coming true. Some analysts suspect Ford could be pruning its crossover lineup because it has too many similarly-sized offerings at the moment, the Edge hasn't met its sales targets in Europe, and more compact crossovers are on the way that could bring better street cred if they're associated with the Bronco or Bronco Sport. Unifor and Ford are now in negotiations over a new contract, so it's possible we'll get more clarity in the next month or so about Ford's plans and what will come of Oakville and its roughly 4,000 workers. If Ford walks away from the assembly plant, it will only have two engine plants left in Canada, and no vehicle assembly north of the border for the first time in about a century.

Ford Fiesta rally car warms up in Sweden

Rallycross is seeing a sudden surge in popularity with two series bringing the racing to the US and Europe. The Ford OMSE team is competing in both championships this season, and it saw no reason not to hold practice with a highly modified Fiesta in the snow of Northern Sweden. It brought together Andreas Bakkerud from the European-focused FIA World Rallycross Championship and Patrik Sandell from the North American-focused Global Rallycross series for some training and fun. They certainly appear to be enjoying themselves, too, with some lovely pirouettes in the powder.
If you're unfamiliar with rallycross, the discipline combines the best of rallying and circuit racing. Drivers (with no co-drivers) race rally cars over a circuit that generally mixes dirt and asphalt, and unlike traditional rallying, multiple cars compete side-by-side at once. Even better, it's often a very two-fisted form of motorsports with lots of car-to-car contact. Global Rallycross and World Rallycross will both kick off their seasons in May. With spring on the way, scroll down to watch the Fiesta kick up some of the last snow drifts of the year.