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United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico

2018 GMC Canyon Denali isn't worth the money

In the GMC lineup, Denali is the top dog. It's the trim with all the bells and whistles, and often provides an experience comparable to Cadillac. Unfortunately that's not the case in the GMC Canyon Denali we drove recently. In the Canyon's case, the Denali trim isn't worth the price premium because it isn't luxurious enough and doesn't distinguish itself from the midlevel SLT trim. While the outside maintains the Denali look with a unique chrome grille, chrome door handles, 20-inch wheels, and big Denali badges (which a guy at a car wash immediately noticed when this editor drove past), the interior and feature set don't rise to meet the borderline Cadillac image of Denali. All GMC did to spruce up the already drab, gray, plasticky interior of the Canyon was give it black leather, some real aluminum trim, some fake wood trim, and stitched soft-touch surfaces. The aluminum and leather are nice touches, but they don't look much different from the black and aluminum-look plastic in lower trim models. The fake wood also looks really fake. They're also exactly the same upgrades as what you'll find in an SLT. But the SLT offers a dark brown color scheme as an option, which would help alleviate the dinginess, and the SLT, equipped exactly like a base Denali, costs $2,690 less at $41,575. The same issue comes up with equipment. The Denali has heated seats and steering wheel, navigation, automatic climate and navigation, but so does the SLT. The big problem here is that Denali is supposed to indicate the best, most luxurious vehicle GMC has to offer, but there's not enough differentiation — or specialness, even — to separate it from a well-optioned SLT. GMC needs to give the Denali something more. It needs some real wood trim, or perhaps some interior schemes with contrasting materials you can't find in other Canyons. It should have some other special luxury features included that can't be added to lower trim GMCs such as a heads-up display, automatic windshield wipers, push-button keyless entry and starting, things like that. The real reason to buy the Canyon Denali is really to get the prestige that the Denali badge brings, rather than the specific equipment it has — the Denali name has some value, after all. But if you can look past the badge and focus on practicality, the SLT is the runaway winner, offering the exact same experience for a notably lower price.

Weekly Recap: Auto execs face life in prison for recall delays under proposed legislation

The stiff punishments are part of broader transportation legislation, but clearly McCaskill has automakers in her sights.
Missouri Senator Claire McCaskill threw down the gauntlet this week, proposing a bill that could send auto executives to prison for life if they were found to have delayed a recall. She also wants to eliminate the limit for fines for auto safety violations, which are currently capped at $35 million.