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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.

Honda Ridgeline, Ford Ecosport and Tesla profits | Autoblog Podcast #537

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Green Editor John Beltz Snyder and Associate Editor Joel Stocksdale. We talk about driving the 2018 Ford Ecosport and Hyundai Accent. Joel tells us why he loves the naturally aspirated engine in our long-term Honda Ridgeline. We discuss Tesla's profitability claims, Johan de Nysschen leaving Cadillac and a possible date change for the Detroit Auto Show. As usual, we'll also spend a listener's money on a car. Autoblog Podcast #537 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Driving the 2018 Ford Ecosport Driving the 2018 Hyundai Accent A love letter to the Honda Ridgeline's V6 Leadership change at Cadillac Will Tesla be profitable this year? Will NAIAS move to October? Spend my money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: Earnings/Financials Green Podcasts Detroit Auto Show Cadillac Ford Honda Hyundai Tesla Used Car Buying Truck Crossover SUV Economy Cars Electric Sedan

Next Shelby Mustang to wear GT350 nameplate

Earlier this month, rumors started to swirl 'round the web about the next-generation Ford SVT Mustang - the halo version of the all-new 2015 'Stang seen testing in the gallery above. Originally, we heard that the Shelby GT500 moniker would be dumped in favor of "a name you're familiar with," which some sources guessed could mean a return of the Cobra nameplate.
That might not be correct. According to Road & Track, citing a report from Mustangs Daily, the new range-topping Mustang will bring back the Shelby GT350 name - currently used on an aftermarket version of Ford's Pony produced by Shelby American (take a look at our recent Quick Spin of that car). Expect the new GT350 to be quite a bit different than the current GT500 - it will be all motor, using a V8 that's derived from the naturally aspirated 5.0-liter Coyote engine (though it will no doubt have a higher displacement). The GT350 will be a lot more powerful than the next Mustang GT, which is expected to offer something like 450 horsepower, but won't be quite as absurd as the 662-horsepower GT500 we currently enjoy.
The Shelby GT350 will reportedly bow with the rest of the new Mustang range at the 2014 New York Auto Show, which coincides exactly with the original Mustang's debut at the New York World's Fair in 1964. If that seems far out, don't worry, we'll be seeing the rest of the 2015 Mustang range before then, but Road & Track reports that the 2014 Detroit Auto Show stage will be reserved for the reveal of the next Ford F-150 pickup.