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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.

Weekly Recap For 6.24.16 | Autoblog Minute

Leaked photos of the 2017 Porsche Panamera, and spy shots of the Jeep Wrangler and Ford Fiesta ST. Senior Producer Chris McGraw reports on this edition of Autoblog Minute. Ford Jeep Porsche Autoblog Minute Videos Original Video ford fiesta st fiesta st

Mercedes-Benz Sprinter and Ford Transit can haul on the track

Line up any two comparable vehicles, and eople are going to want to race them. Need proof? In its latest track battle, Auto Express wants to know which commercial vehicle can lap a circuit faster - a Ford Transit or Mercedes-Benz Sprinter. Let's face it, neither of these European vans were ever meant to be near the track unless they are delivering a racecar and a ton of parts for a fun weekend, but it's massively fun to watch them give it a go anyway.
The one thing that Auto Express really illustrates here is the modern marvel that is stability control. The driver hops curves, and these big vans lean in the corners like your friend walking home from a long night at the bar. However, because of the amazing stability systems, the vans mostly keep all of their wheels planted and never seem close to getting sloppy, despite their behemoth size.
Unfortunately, the two vans aren't exactly fairly paired. The Ford has a dual rear axle and a few other advantages over the Mercedes, but it's still hilarious to watch them go. Even better, the host breaks down everything happening behind the wheel like these commercial vehicles were two Porsches. Enjoy watching this very unorthodox battle between Ford and Mercedes.