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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

Genesis, Hyundai, Ram win North American Car, Utility, Truck of the Year at NAIAS

DETROIT — The Hyundai Genesis G70, Hyundai Kona/Kona Electric and the Ram pickup have received North American car, sport utility and truck of the year awards. The awards were announced Monday at the North American International Auto Show in Detroit. This year's car finalists also included the Honda Insight and Volvo S60/V60. Truck finalists included the Chevrolet Silverado 1500, GMC Sierra 1500. SUV finalists also included the Acura RDX and the Jaguar I-Pace. Last year's winners were the Honda Accord, Lincoln Navigator and the Volvo XC60. About 55 automotive journalists serve as judges. Eligible vehicles must be new or substantially changed. Organizers accept no advertising, though automakers try to capitalize on the marketing value of the awards, which are now in their 25th year. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Ram increasing EcoDiesel production [w/video]

The Ram 1500 EcoDiesel shot out of the gate with strong sales by filling its initial allocation of 8,000 orders in just three days, in February. At the time, Ram expected that the oil-burning variant would account for around 10 percent of 1500 output, but it knew there was room to grow if the demand was there. Apparently it is, as the truck maker is doubling the diesel's production mix for the 2015 model year to 20 percent of the pickup's total volume.
Since hitting the market, the EcoDiesel has been a smashing success, according to Ram. The company claims that nearly 60 percent of its sales have been conquests from other truck brands, and its popularity has boosted the 1500's average transaction price, as well. In an accompanying video, brand president Bob Hegbloom said that customers have been demanding more of them.
"Innovation sometimes comes with risk, but being first to market with a diesel engine for the half-ton segment has shown to be a great decision for the Ram Brand," said Hegbloom in the company's release.