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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.

Autoblog Podcast #327

New York Auto Show, Jim Farley interview, 2014 Chevrolet Silverado fuel economy, Ford fuel economy app challenge
Episode #327 of the Autoblog Podcast is here, and this week, Dan Roth, Zach Bowman and Jeff Ross talk about this year's New York Auto Show, Chevrolet's latest assault in the pickup truck fuel economy battle, and Ford's reward for developing a better fuel economy app. Dan also has an interview with Ford's Jim Farley about the future of Lincoln. We wrap with your questions and emails, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!
Autoblog Podcast #327:

Ford preparing camera-based Front Lighting System

Ford's European Research and Innovation Center in Aachen, Germany is in pre-development on two new lighting technologies that Ford expects to be available "in the near-term." The Camera-Based Advanced Front Lighting System uses GPS and a video camera in the rear-view mirror housing to move the adaptive headlights with the road terrain. When the car detects a roundabout or an intersection, for instance, the light beam widens to offer a bigger view of what's coming from the side. If GPS detected the intersection, the location is tagged so that the beam automatically widens when it is encountered again. The Spot Lighting system uses an infrared camera behind the grille, and is similar to but less complex than systems employed by Mercedes-Benz and Audi. When the infrared camera detects a potential hazard like a person or an animal in or near the road up to 390 feet ahead, it can shine one of two LED spotlights on the danger. A display in the dash cluster will highlight the object with a yellow or a red box, depending on the how close it is and how dangerous it might be. Even though there are only two spotlights, mounted next to the fog lights on the lower front bumper, the system can detect up to eight objects at a time. Don't expect to see these features come to the US, though. Our regulations remain opposed to such headlight trickery, so until that changes, Ford says it's focusing these developments on the European and Asian markets. The video above shows how it works, the press release below has more details. FORD DEVELOPING ADVANCED HEADLIGHTS THAT POINT OUT PEOPLE, ANIMALS IN THE DARK, AND WIDEN BEAMS AT TRICKY JUNCTIONS - Ford is developing advanced lighting technology that enables drivers to more easily see potential hazards when driving at night - Camera-Based Advanced Front Lighting System widens beam at junctions and roundabouts after interpreting traffic signs - GPS-enabled system uses forward-facing camera to remember roadways and direct lighting to help drivers better see bends in the road – effectively lighting the way home on previously travelled routes - Spot Lighting uses infra-red camera to detect pedestrians, cyclists, and animals, and highlight the potential hazards; system can detect up to eight potential hazards and highlight two highest priorities using specially designed headlights and on-screen display AACHEN, Germany, July 17, 2015 – Driving at night, particularly on unlit roads, can be a nerve-wracking experience.