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As US exports top 2 million, is America becoming the world's source of cheap cars?

North American auto production is booming with 2014 figures just shy of the of the 17.3-million vehicle record set in 2000. With more models being built on the continent, even more are being shipped overseas. Factories in the US exported 2.1 million cars last year – the highest number ever. About half of those went to Canada and Mexico, but more than ever have been heading to places like the Middle East and China. The upswing comes in part from from after-effects from the Great Recession, according to The Wall Street Journal. With a weak dollar and lower production costs after the financial crisis, building vehicles in the US was relatively cheaper and more competitive in the world. At the same time buyers around the world are going crazy for crossovers. According to the WSJ, BMW and Mercedes-Benz are already exporting the majority of their US production of these models overseas. Both automakers have also announced investments to expand production further here to send more vehicles abroad. Even Honda has been shipping more models out of the country than it imported here. There is a concern this international strength could start slowing because the dollar is strengthening against other currencies, though it's too early to know what the actual effect of this could be, according to the WSJ. "Of course, we closely watch currency exchange, but we don't make changes in production or allocation based on temporary fluctuations in the exchange rate," Ford North American boss Joe Hinrichs told the newspaper. Related Video: News Source: The Wall Street Journal - sub. req.Image Credit: BMW Plants/Manufacturing BMW Ford Honda Mercedes-Benz exports us auto production

2016 British Grand Prix kept mostly calm and carried on

Three bursts of chaos decided the course of the British Grand Prix. The first was a literal cloudburst a dozen minutes before the race, which poured water on the Silverstone Circuit while drivers sat on the grid. Six minutes before the lights-out, the race director decided to start the race behind the Safety Car. The field loped around the wet track for five laps. When the Safety Car pulled off, the three leaders – Mercedes-AMG Petronas' Lewis Hamilton, followed by teammate Nico Rosberg and Red Bull's Max Verstappen – stayed out. Behind them, the second chaotic moment occurred: a big group of drivers made pit stops for intermediate tires. When Manor's Pascal Wehrlein spun at Turn 1 on Lap 7, officials issued a Virtual Safety Car. With the rest of the field slowed down, the three leaders ducked into the pits on Lap 8 for intermediates. The fortuitous timing meant all three drivers rejoined the track in their original positions. By Lap 9, with racing resumed, Hamilton had a 4.9-second lead on Rosberg. From that point, even as the track dried, no one bothered Hamilton during what one commentator called "a measured drive." The Brit won his home grand prix, taking the checkered flag seven seconds ahead of Rosberg. Rosberg had to earn second place on track. The German's car didn't respond well to the intermediate tires, so Verstappen excecuted an outstanding pass on Rosberg on the outside through Chapel on Lap 16. After everyone switched to slicks, Rosberg's Mercedes reclaimed its mojo and the German hunted Verstappen down, passing the Dutchman on Lap 38. The final touch of chaos happened when Rosberg's gearbox threw a tantrum on Lap 47 of the 52-lap race. Rosberg radioed his engineer, "Gearbox problem!" His engineer replied, "Affirm. Chassis default zero one. Avoid seventh gear, Nico." The race stewards allowed the engineer's first two statements, but stewards said the instruction about seventh gear contravened the rule that "the driver must drive the car alone and unaided." After the race, officials added ten seconds to Rosberg's time, demoting him to third behind Verstappen. Rosberg's is the first penalty arising from radio communication restrictions. Unsurprisingly, Mercedes will appeal. At this year's Baku race the radio controversy stemmed from engineers refusing to tell drivers what to do. Now we know what happens when the pit wall gets loose lips.

Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.