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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.

Ford to pay $17.35 million over Escape recall

Ford had a bit of a recall spree around this time last year, with a pair of issues on the then-new 2013 Escape, followed by a recall of 423,000 2001 to 2004 Escapes because they might accelerate of their own accord. Accordingly, Uncle Sam pasted Ford with a $17.35 million fine because it took too long to inform customers, according to a report from Automotive News.
Ford agreed to settle with the National Highway Traffic Safety Administration, accepting the fine but not admitting fault. The recall, which afflicted Escapes with the 3.0-liter V-6 along with 217,000 Mazda Tributes from 2001 to 2006 and 2008, was due to faulty gas pedals that could stay down after a driver removed their foot.
Ford issued a statement regarding the fine, saying, "We take the safety of our customers seriously and continuously evaluate our processes for improvements. While we are confident in our current processes for quickly identifying and addressing potential vehicle issues, Ford agreed to this settlement to avoid a lengthy dispute with the government."

2021 Ford F-150 Raptor vs. 2021 Ram 1500 TRX | How they compare on paper

Yep, the F-150 Raptor is back, though you'd be forgiven for not noticing that it ever left. Ford's off-road model is taking a few months off to accommodate the broader 2021 F-150 redesign from which it benefits. And the fine folks over at Ram took full advantage of that lull to launch the new 702-horsepower TRX, which in one big way (hint: it's the engine) stands at the top of the performance pickup heap. Ford says that's all going to change in 2022, but for now, the Raptor returns with a familiar 3.5-liter EcoBoost V6 (albeit with an unspecified power figure) along with several other revisions to Ford's tried-and-true formula. The 2020 Raptor was already a worthy adversary to the beefy Ram despite the latter's definitive power advantage, so how has that picture evolved for 2021? Let's take a look.    Powertrain This is a big question mark for the Ford right now, but it seems reasonable to expect a bit more than the outgoing model's 450 horsepower and 510 pound-feet of torque. The TRX's Hellcat-sourced powerplant needs no introduction. Its 702 horsepower will easily eclipse whatever Ford has planned for its 3.5-liter twin-turbo V6, even if the V6 has more grunt than it did before, but that's OK. It's not the base-model Raptor's job to dethrone the TRX in straight-line speed; that honor will go to the 2022 Raptor R. We also don't know what the Raptor's fuel economy will be like, but we suspect it will be better than the TRX's, if only slightly.  Both these trucks come with four-wheel-drive standard, and they both have a number of drive modes that alter the powertrain’s characteristics depending on the terrain. Baja mode transforms the trucks into the desert runners that they both are at heart, but theyÂ’re plenty capable of crawling around rocks, too. We wonÂ’t know for certain which is best at specific tasks until we can get them both on (or off) equal ground. Suspension / off-roading capability And the ground is where things narrow significantly, both on- and off-paper. The specs are freakishly similar when we compare ground clearance, approach/departure angles and water fording, but the Raptor's leapfrog here is clearly evident. Both trucks utilize a coil-sprung rear suspension now, with Ford having abandoned the Raptor's previous leaf-spring setup with the redesign.  The two use different shocks to handle 100-mph-plus desert running.