1966 Ford Fairlane Gt on 2040-cars

Auto blog

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

Focus ST diesel variant coming, just don't look for it here

A few years back, Volkswagen made some waves when it announced the Golf GTD - a diesel-powered car that, aside from its ultra-efficient, ultra-torquey engine, was identical to the gas-powered GTI. That meant cosseting sport seats, larger wheels, sportier suspension, larger brakes and a body kit that made the GTD indistinguishable from the GTI, except for the three little letters on the back and in the grille.
Now, Ford is looking to replicate VW's success, with a diesel version of the Focus ST. According to Motor Trend, the diesel-powered ST will use a 2.0-liter, 182-horsepower four-cylinder. With an unspecified amount of torque on offer (we'd guess around 280 pound-feet), the diesel hot hatch should hit 62 miles per hour in about eight seconds.
The report, which originally comes from Auto Express, claims the ST Diesel was confirmed by Ford Chief Marketing Officer Mark Fields during this week's Geneva Motor Show. Not surprisingly, it doesn't appear there are any plans to bring a diesel-powered Focus of any kind to the US, let alone one that uses the suspension, steering and other items from the ST. Of course, if there's an official confirmation from Ford, we'll be sure to report on it.

Ford taken to task by gov't for Chicken Tax end-around

Ford is in a bit of a pickle for importing and selling Turkey-built Transit Connect cargo vans as passenger vehicles in the US, then converting them to commercial-vehicle specification stateside in an effort to bypass a 25-percent tax imposed on vehicles imported for commercial use. Automakers are required to pay a 2.5-percent tax on imported passenger vehicles.
The Blue Oval got into trouble for this in a January ruling in which U.S. Customs and Border Protection officials asked Ford to stop the practice of importing the Transit Connect vehicles with passenger seats, then removing and shredding them. Now Automotive News reports that Ford is appealing the ruling. The 25-percent "Chicken Tax," as the tariff is often called, is 50 years old and was enacted as a response to a German tariff on chickens. Like Ford, Chrysler bypasses the higher tariff, but it does so in a different manner. It partially disassembles Sprinter cargo vans before shipping them to the US, then rebuilds them at a plant in South Carolina.
But the ruling against Ford's strategy states that it "serves no manufacturing or commercial purpose" and is there to "manipulate the tariff schedule," Automotive News reports. As Ford's appeal goes through, it is importing the Transit Connect and paying the higher tax, hoping for a favorable outcome and planning to build the next-generation Transit Connect, which it plans to launch before the end of the year, in Spain.