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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.

The 24 Hour War: Adam Carolla's new documentary brings the Ford-Ferrari battle back to life

Long before the GoPro or even videotape, races were filmed by guys standing next to the track with 16-millimeter cameras. The images kind of shook, they didn't always hold focus, and over the years all the color has faded out of the film. It all conspires to make the endurance racing battle between Ferrari and Ford in the 1960s seem like ancient history. What Adam Carolla and Nate Adams' new documentary The 24 Hour War does best is make that inter-corporate battle feel as if it happened yesterday. Yeah, if you're an obsessive you've likely seen most of the shaky-cam race footage used here before. But what you haven't seen are the interviews that frame the war and explain the egos and engineering behind the legends. It's not a perfect movie, but it's the sort of movie only fanatics could make. And it's easier to appreciate if you're a fanatic too. The first 25-or-so minutes of the documentary are taken up with histories of both Ford and Ferrari and an overview of how ridiculously deadly motorsports were in the Sixties and earlier. It's all interesting (if familiar) stuff, that could have been handled in about a third the time with some brutal editing. Still, the two protagonists in the story are well drawn: the racing-crazed Enzo Ferrari, who only builds road cars to stay solvent; and Henry Ford II, who after being thrown into the deep end of the Ford Motor Company management in 1943 at the age of 25, wasn't going to be humiliated after Ferrari pulled out of a deal to sell him the sports car maker. With one notable exception, the filmmakers were successful in rounding up practically everyone involved who is still alive for an interview. That includes Dan Gurney, Mario Andretti, Pete Brock, Bob Bondurant, Piero Ferrari, Mauro Forghieri, Carlo Tazzioli, and even Ralph Nader. There are good archival insights from the late Carroll Shelby. But where's A.J. Foyt? After all, he co-drove the stupendous Ford GT40 Mark IV with Dan Gurney to victory at Le Mans in 1967. The interviews make the movie worthwhile, but it cries out for more technical depth about the cars themselves. Yes, the GT40 was complex and engineered practically like a production car, but there's no mention of how the Lola Mk VI and Eric Broadley kicked off the development. There's only a superficial explanation of what made the American-built Mark IV such a leap forward.

Recharge Wrap-up: Tesla considers Model III SUV and wagon, Ford tears Tesla apart

Worries over Brazil's electric grid mean EVs are excluded from green car incentives. As part of a new efficiency program, non-plug-in hybrids will be eligible for a reduction in import duties, while EVs and plug-in hybrids will not. Brazil's government is concerned that the country's grid lacks the capacity to handle the increased load from an influx of EVs. Brazil plans to create a new incentive program - perhaps a more inclusive one - when the current one expires at the end of 2015. Read more at Green Car Reports. Tesla could make SUV and wagon derivatives of the upcoming Model III sedan. Tesla's VP of engineering, Chris Porritt, told Auto Express that to reach as many customers as possible, Tesla would consider all its options. "SUVs, estates - who knows?" says Porritt. He also says that while the company is currently focused on products with a broader appeal, another Roadster or other sports car aren't out of the question in the future. Read more at Auto Express. Ford admits to a Tesla Model S teardown. Ford CEO Mark Fields says that after disassembling, reassembling and driving the model S, his company is "very familiar with that product." He also says the Ford has the capability to build a similarly high-tech, long-range electric car. The questions still remains if Ford has plans for such a vehicle, but Fields says that it fits within Ford's "product philosophy." Read more at Business Insider and at USA Today.