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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

Toyota, Ford and Honda again top Consumer Reports Car-Brand Perception Survey

Consumer Reports has released its annual Car-Brand Perception Survey, and the list looks awfully familiar. The top six brands are identical to last year's results, with Toyota, Ford and Honda continuing to occupy the podium. All told, Toyota walked away with 133 points, putting it 15 ahead of second-place Ford. Honda jumped 26 points this year, narrowing Ford's lead to just four points in total.
Consumer Reports polls buyers from across the country on how they see multiple brands in seven categories, including quality, safety, value, performance, design/style, technology/innovation and environmentally friendly/green. Researchers then combine the findings to come up with the total brand score.
While value and performance remain important to buyers, CR found quality and safety are still on top when it comes to significance. Scion and Mitsubishi found themselves at the bottom of the pack with the worst score of all, tied at just six points. Ram, Fiat and Mini filled out the lowest five with scores of seven, eight and 10 points, respectively. You can read the full press release below for more information, or head over to the Consumer Reports site.

Honda shifts CR-V production to Canada as UK focuses on Civic

Honda is reshuffling its global production in a somewhat bizarre way. Under the newly announced plans, the European version of the CR-V will no longer be assembled locally, but the region will become the hub for some Civic production. As part of this new strategy, Honda's Canadian manufacturing operations will become responsible for building the next-gen version of the European CR-V. Once assembled, the popular crossovers will then be exported back across the Atlantic. The investment to make these changes comes from 875 million Canadian dollars ($690 million) already allocated by Honda for expansion there. The current European CR-V (pictured above) is made in Swindon, England, and with that model moving to Canada, the site fulfills the second part of this production shuffle. Honda will invest 200 million pounds ($300 million) there to make the location a global production hub specifically for the next-gen Civic five-door hatchback. The examples made in the UK will be not just for Europe but also will be "exported to key global markets," according to the automaker. Honda now confirms one of those markets to be the US, and a recent rumor suggests the company sending over around 40,000 of them a year. Related Video: HONDA OF CANADA MFG. EXPANDS EXPORT DESTINATIONS WITH EUROPEAN SPEC CR-V ALLISTON, ON (March 30, 2015) – Honda of Canada Mfg. (HCM), a division of Honda Canada Inc., announced today that it will produce the next generation CR-V model for the European market. This will be the first time that HCM will export vehicles to Europe. Today's news follows Honda's recent announcement that it will invest $857M in its Canadian facilities, as it prepares for production as the global lead plant for the next generation Honda Civic, Canada's best-selling passenger car for the past 17 years. "Honda is thrilled to once again have good news for automotive manufacturing in Canada by broadening our production portfolio to include exports to the European market," said Jerry Chenkin, President and CEO of Honda Canada Inc. "This expansion decision was made possible due to our deep, mature, and rich talent pool with nearly 30 years of automotive manufacturing experience. We are so proud that our Canadian associates have the reputation of producing high quality vehicles that will meet the needs of the discerning European customer." The announcement further solidifies Honda's already deep roots and commitment to Canada.