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United States drivers buying fewer Mexican-made cars
Tue, May 10 2016Crossovers 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
White House clears way for NHTSA to mandate vehicle black boxes
Fri, 07 Dec 2012At present, over 90 percent of all new vehicles sold in the United States today are equipped with event data recorders, more commonly known as black boxes. If the National Highway Traffic Safety Administration gets its way, that already high figure will swell to a full 100 percent in short order.
Such automotive black boxes have been in existence since the 1990s, and all current Ford, General Motors, Mazda and Toyota vehicles are so equipped. NHTSA has been attempting to make these data recorders mandatory for automakers, and according to The Detroit News, the White House Office of Management Budget has just finished reviewing the proposal, clearing the way. Now NHTSA is expected to draft new legislation to make the boxes a requirement.
One problem with current black boxes is that there's no set of standards for automakers to follow when creating what bits of data are recorded, and for how long or in what format it is stored. In other words, one automaker's box is probably not compatible with its competitors.
Mazda2 sedan debuting in Thailand this month?
Mon, 03 Nov 2014Mazda is reportedly set to introduce a Mazda2 with a four-door sedan body. Unlike the upcoming CX-3, which is debuting at the upcoming Los Angeles Auto Show and is almost certain to be sold in North America, this other version's chance here are a bit more mysterious.
According to The Bangkok Post, the Mazda2 sedan will make its word debut at the Thailand International Motor Expo on November 28, and the traditional five-door hatch will be there as well. Both body styles will be built in Thailand with diesel engines and will be the first vehicles to adhere to the country's eco-car rules for oil-burners with a SkyActiv 1.5-liter diesel that will make 105 horsepower.
At this time, there's no indication whether the new sedan might also be sold in the US, but we're not holding our breath - remember, the previous Mazda2 sedan never made it Stateside, either.