2014 Navigation Sunroof 20s Aluminum V8 Sohc Lifetime Warranty on 2040-cars

Auto blog

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.

NHTSA probes 2014 Ford Edge Sport 22-inch alloy wheels

The National Highway Traffic Safety Administration is opening a preliminary evaluation into the 2014 Ford Edge Sport for the possibility its 22-inch wheels could break while on the road. This affects an estimated 20,000 examples of the crossover, according to NHTSA. The case that instigated this evaluation was submitted to NHTSA in November 2014. The driver reported that the front, right corner of the vehicle suddenly dipped, and the Edge went into a field. No one was harmed, but upon investigation, the wheel had broken into two pieces, according to The Detroit News. When this happened, this crossover had been driven an estimated 8,500 miles. NHTSA's preliminary evaluations are meant "to assess the scope, frequency, and safety-related consequences of the alleged defect in the subject vehicles." If a problem is discovered during the investigation, this process can lead to a recall. Ford spokesperson Kelli Felker told Autoblog, "We will cooperate with NHTSA on this investigation, as we always do." INVESTIGATION Subject : Wheel Separation Date Investigation Opened: MAY 20, 2015 Date Investigation Closed: Open NHTSA Action Number: PE15020 Component(s): WHEELS All Products Associated with this Investigation Vehicle Make Model Model Year(s) FORD EDGE 2014 Details Manufacturer: Ford Motor Company SUMMARY: On November 29, 2014, ODI received a complaint (ODI No. 10661278) reporting the sudden failure of an original equipment 22-inch alloy wheel rim that failed on a model year 2014 Ford Edge. The right-front corner of the vehicle suddenly dropped while driving, causing the vehicle to drive off the road and into a field. The right-front wheel rim was found to have broken into two pieces. The owner said that there was no prior warning or wheel related problems with the vehicle. The vehicle had been driven approximately 8,500 miles at the time of the incident. A preliminary evaluation has been opened to assess the scope, frequency and safety-related consequences of the alleged defect in the subject vehicles. Related Video:

Ford Q3 pretax profits drop to $1.18B

Following positive third quarter financial results recently from General Motors, rival Ford took a tumble in Q3. The automaker posted pre-tax profits of $1.18 billion, compared to about $2.59 billion in Q3 2013, a drop of around 54 percent. Net income also suffered with $835 million made in the quarter, versus $1.272 billion last year, a decline of about 34 percent. The Blue Oval blamed the gloomy figures on three reasons in its release: "lower volume, higher warranty costs and adverse balance sheet exchange effects."
There were problems of one kind or another in practically every region. North America experienced higher warranty costs than expected, partially due to recalls. The sales volume for the quarter was 665,000 units, versus 725,000 in Q3 2013, and pre-tax results amounted to $1.41 billion versus $2.296 billion last year.
South America and Europe both posted worse pre-tax results than last year. On the bright side, European volume was up slightly to 321,000 vehicles, from 303,000 in Q3 2013. The Middle East and Africa also lost $15 million, but that was an improvement compared to the $25 million loss previously experienced in this region.