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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.

2015 Ford Mustang spied on video for the first time

Not many cars will continue to hold our rapt attention quite like the upcoming redesigned 2015 Ford Mustang, codenamed S550 internally. Earlier this month, we brought you the first spy photos of a next-gen Mustang prototype out testing, and even though expertly placed cladding concealed the pony car's new shape, we could tell that underneath was hiding an altogether new form inspired by the Evos Concept from 2011.
Today we give you some video of what looks to be the same Mustang prototype, which you can watch below, and while the budding director behind the camera wasn't able to capture much in the way of the engine's audio signature, we can see the car in motion for the first time and compare its relative size and shape to the S197 Mustang GT that's on its tail.

Lincoln Continental to end after one-and-done generation?

After only 18 months on sale, the vultures of rumor have begun circling above the Lincoln Continental. Ford Authority says "sources intricately familiar with Ford Motor Company's future product plans" for the domestic luxury brand say the Continental won't get another chance at life after this generation. Those sources didn't detail Ford's reasons for dispatching the executioner on another sad task, but if this is true, even the reasons we can only guess make enough sense to justify the move. The Continental launched into a crossover mania still mushrooming in strength like some Marvel villain, the equivalent of a new dinosaur hatching a few months before the Chicxulub Impact Event. In 18 months, the Continental sold 18,846 units, 12,012 of those sales happening in 2017. In the U.S. this year, sales amounted to 1,573 units through February, about 25 percent down on the annualized monthly rate. It could be worse: The Lexus GS has found 1,009 U.S. buyers so far this year, the Acura RLX, 285. Conversely, the Cadillac XTS — yes, a fleet darling — secured 3,163 sales in the same period. And the German kingpins live in another dimension, with BMW scooting 5,641 5 Series models off dealer lots, and the Mercedes E-Class boasting 8,411 sales of all three variants. Even the much more expensive and much more profitable Lincoln Navigator rang up 2,351 sales in the first 60 days of 2018. That's disheartening reading, especially after Ford reportedly spent more than $1 billion to bring the Continental to market. Sedan segment woes look to have killed the Continental's platform siblings, too, making the Lincoln's demise simply part of the cull. The CD4 architecture also underpins the Ford Fusion and Lincoln MKZ. Ford canceled the Fusion redesign and won't commit to making either vehicle after 2020. Lincoln's passenger car sales declined more than 30 percent last month; meanwhile, Lincoln needs to spend its money on the crossovers that are selling, and investment in the coming three-row Aviator that will replace the MKT. Ford has a CD6 platform in development that suits front-, rear-, and all-wheel-drive vehicles. Under previous CEO Mark Fields, a new Fusion, Mustang, and MKZ would ride on the CD6, as well as the new Explorer and a Lincoln brother. Those plans left with the previous administration, and company sources told both Ford Authority and The Truth About Cars not to expect a Continental revival on that architecture. Related Video: