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Why the Detroit Three should merge their engine operations
Tue, Dec 22 2015GM 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.
This Or That: Fiat 500 Abarth vs. Ford Fiesta ST [w/poll]
Thu, 21 Aug 2014
They're pretty darn similar. And yet our views are oh so different.
If you guys could read the transcripts of our editors' chat room, you'd know that we're a pretty argumentative bunch. It's always good-spirited stuff (well, usually), but when we're not obsessively covering this or that, we're usually fighting about one car being better than another. We're all enthusiasts here, and our automotive tastes run the gamut from the weird and unusual to the decidedly mainstream - we all feel strongly about specific cars in a given segment. While it usually makes for good conversation, if we're passionate enough, it can turn into a tomato-throwing showdown.
Daily Driver: 2015 Ford Edge Sport
Thu, May 7 2015Daily Driver videos are micro-reviews of vehicles in the Autoblog press fleet, reviewed by the staffers that drive them every day. Today's Daily Driver features the 2015 Ford Edge Sport, reviewed by Adam Morath. You can watch the video above or read a transcript below. Watch more Autoblog videos at /videos. VIDEO TRANSCRIPT [00:00:00] Hi. I'm Adam Morath for Autoblog and in today's Daily Driver we're with the 2015 Ford Edge. It's been completely redesigned and I really think that it needed it because this was always kind of the last car to come to mind when I was considering all of Ford's lineup. It was sort of forgotten. I don't think that will be the case anymore. It looks great. They revamped the exterior. The first thing I noticed walking up to the car when they first dropped it off was [00:00:30] the great job they've done with the taillights. They've got a very high tech look to them. You have LED accent lighting that surrounds the tail lamps and then a light bar that spans the entire deck lid. It looks pretty cool, very angular, a lot sportier than the previous models. We also have the optional HID headlights so if you combine that with what I've already told you about with the [00:01:00] tail lamps, and also the ambient lighting inside this vehicle ... It just feels like the lighting in general was very well considered on the Edge and gives it a very modern feel. The nice design continues to the interior as well. You've got leather panels with contrast stitching on the sport model. You've got a nice center console that actually has some storage underneath it, so it's sort of a floating center console. The only thing is there is still a little bit of cheap plastic [00:01:30] used on the interior. That's a common complaint of automotive journalists worldwide, but this one I can see already has a few scratches on it. You can also get this vehicle with 20-inch aluminum wheels or 21-inch matte black aluminum wheels. Here we've got them wrapped in Perelli. I haven't been on a track or anything where you could really get a sense of the performance, but again, that just adds to the sporty look of the Edge in the sport trim level. It has the new 2.7 [00:02:00] liter Eco Boost V6 and I have been really happy with this powertrain. It puts out 315 horsepower, 350 pound feet of torque, and that's that twin turbo working for you. It helps with acceleration and passing at highway speed, so it checks both boxes there.