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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.

William Clay Ford Sr. dead at 88

William Clay Ford, retired vice chairman of Ford Motor Company and the last surviving grandchild of company founder Henry Ford, died this morning after a bout with pneumonia. He was 88.
Ford spent 57 years with his grandfather's company, joining the board of directors in 1948 before graduating from college. Ford also held a position as chairman of the design committee, as well as the chairman of the executive committee and vice chairman of the Board of Directors during his tenure with the company. In a 2013 Detroit Free Press story, retired CFO Allan Gilmour said Ford had an eye for design, and was once able to pick out when a fiberglass model of a Ford Contour was asymmetrical, off by an inch on one side. He retired and assumed the position of director emeritus in 2005.
"My father was a great business leader and humanitarian who dedicated his life to the company and the community," said Bill Ford, Jr., Ford's current executive chairman. "He also was a wonderful family man, a loving husband, father, grandfather and great-grandfather. He will be greatly missed by everyone who knew him, yet he will continue to inspire us all."

2015 Ford Edge First Drive [w/videos]

We're routinely told that it's not easy being the middle child. The oldest sibling will always outshine the rest, while the youngest is routinely doted upon. The middle child, meanwhile, is seemingly never able to measure up. You know the drill: Marcia, Marcia, Marcia! But that hasn't really been the case for Ford's mid-kid crossover, the Edge. Sandwiched between its highly successful big brother, the Explorer, and the stylish younger brother, the Escape, the Edge has had plenty of its own bragging rights over the years. It's where the Blue Oval chose to first launch MyFord Touch in 2011, and was one of the company's first applications of an EcoBoost engine in a CUV. For 2015, Ford has given the Edge a brand-new outfit, complete with stand-out sheetmetal and a revamped 2.0-liter four-cylinder engine fitted with a twin-scroll turbocharger and direct-injection. The result is a vehicle that truly stands out from its compact and fullsize siblings while promising to retain Ford's edge in the midsize CUV market. Where many of Ford's cars have opted for a slim, Aston Martin-like grille, the new Edge's face is big and bold. It's around back, however, where the Edge really comes up with its own personality. The slimmer D-pillar forms the edges of a more aggressively raked rear window. It's difficult to spot in pictures, but the result is a decidedly more assertive profile than the outgoing CUV. Beyond that, the rear is home to Fusion-inspired taillights, although unlike Ford's popular midsize sedan, they're joined together by a vehicle-spanning lighting element that prominently features a Ford badge at its center. Ford's work on the Edge's interior is less progressive, though. The owner of a 2014 model wouldn't feel the least bit out of place climbing behind the wheel of a 2015, as it features Ford's same reconfigurable instrument cluster, and a center stack that's been crowned by the latest (and final) edition of MyFord Touch. Meanwhile, more JD Power Initial Quality Study-friendly buttons have replaced the obstinate and unintuitive touch-capacitive controls. The conservative take on the interior design belies the big improvements in material quality. The leather inserts in the doors are more heavily padded and the plastics are far softer. It's a similar story throughout the cabin, where owners will notice softer dash plastics and generally richer materials.