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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.

2016 Ford Mustang gets new packages, trim and hood-vent turn signals

Ford just introduced the 2015 Mustang last year, but the iconic pony car is already getting a few minor updates for the 2016 model year consisting primarily of new options packages and trim. For starters, Ford is bringing back the turn indicators integrated into the hood vents, first launched on the Mustang nearly half a century ago, which will now be fitted as standard on the Mustang GT. The feature was apparently requested by customers, and signals to the driver when the turning indicator is on. Premium models also get the new Sync 3 system. The Blue Oval automaker is also offering racing stripes in black or silver on the Mustang GT and Mustang EcoBoost, along with a black roof option. There's a new Pony Package available for the EcoBoost Premium model as well, with 19-inch polished alloys, special grille, side stripe and chrome window surround. Customers ordering a Mustang GT fastback or convertible can opt for the Black Accent Package with murdered-out wheels, spoiler, taillamp trim and logos. There's a California Special Package being offered on the Mustang GT Premium with such touches as 19-inch black machined alloys, hood and side stripes, black spoiler, mirror and hood vents, dark taillamp accents, a front splitter, special grille and gas cap, strut tower brace and an interior decked out in black leather with suede inserts and red stitching. Finally, Ford is offering a Performance Package for the Mustang GT convertible with the manual transmission, similar to the kit available for the fastback but catered to the drop-top. The package includes upgraded suspension, Brembo brakes, 19-inch black-painted alloys, a larger radiator, strut tower brace and K-brace, retuned electronics, a Torsen limited slip differential, machine-turned aluminum instrument panel, a new splitter and the removal of the rear spoiler.

Recharge Wrap-up: Ford 1.0L EcoBoost a hit in Europe; Build a tiny inverter, win $1 million

In Europe, Ford's 1.0-liter EcoBoost engine is the best-selling turbocharged gasoline engine. The three-cylinder motor powers 20 percent of new Fords sold in Europe. Earlier this year, it won its third International Engine of the Year award, and between January and June, it was sold in about 120,000 cars. So far this year, 38 percent of Fords sold in the Netherlands, 35 percent in Denmark and 32 percent in Switzerland have been powered by the 1.0-liter EcoBoost. The engine's turbocharger spins at 248,000 rpm, and provides 24 psi of pressure. The engine produces up to 138 horsepower, depending on the version. Read more in the press release below. When lithium-ion battery packs are retired from the road, remanufacturing, repurposing, and recycling are worthwhile options, according to a study by Mineta Transportation Institute. The study included a cost-benefit analysis of those three options, and found remanufacturing to be the best route. To get the most out of them, batteries should be tested and have their damaged cells replaced then put back to use. Repurposing is the second best option, using the remaining available charge for something besides cars. Recycling on its own isn't profitable, but it could make economic sense with "increased technological breakthroughs." Learn more at Recycling International or download the report here. A smaller inverter for EVs can win you $1 million. The Little Box Challenge is an open competition to build a power inverter with a density of at least 50 watts per cubic inch. Google and the Institute of Electrical and Electronics Engineers (IEEE) are offering the hefty prize to the team that builds the inverter with the highest power density within an enclosed volume of 40 cubic inches. Teams must register by September 30. Read more at Green Car Congress or learn more at the Little Box Challenge website.