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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

GM recalling 316k vehicles due to headlamp faults

General Motors has announced a recall covering 316,357 vehicles globally, due to the possibility of sporadic or permanent failure of the low-beam headlamps. 273,182 of these vehicles are in the United States, while the remaining affected units are in Canada, Mexico, and elsewhere. This recall includes the 2006-09 Buick LaCrosse (pictured above), 2006-07 Chevy TrailBlazer and TrailBlazer EXT, 2006-07 GMC Envoy and 2006 GMC Envoy XL, 2006-07 Buick Rainier, 2006-08 Saab 9-7X, and 2006-08 Isuzu Ascender. In an email sent to Autoblog, General Motors explains that if the headlamp driver modules are not functioning correctly, "the low-beam headlamps and daytime running lamps could intermittently or permanently fail to illuminate." GM states that this problem does not affect things like high-beams, turn signals, marker lamps, or foglamps. As of this writing, GM states it "has not been able to confirm whether the HDMs in these vehicles caused any vehicle accidents." The National Highway Traffic Safety Administration has been notified, but the recall has not yet posted to the government agency's website. Scroll down to read the full details in GM's email. General Motors is recalling 273,182 Buick LaCrosse sedans and Chevrolet, GMC, Buick, Saab and Isuzu midsize SUVs in the U.S. for possible intermittent or permanent loss of low beam headlamps. Affected models are: 2006-2009 Buick LaCrosse sedans; 2006-2007 Chevrolet TrailBlazer and 2006 TrailBlazer EXT; 2006-2007 GMC Envoy and 2006 Envoy XL; 2006-2007 Buick Rainier; 2006-2008 Saab 9-7X and 2006-2008 Isuzu Ascender midsize SUVs. If the headlamp driver modules is not operating correctly, the low-beam headlamps and daytime running lamps could intermittently or permanently fail to illuminate. This condition does not affect the high-beam headlamps, marker lamps, turn signals, or fog lamps. GM has not been able to confirm whether the HDMs in these vehicles caused any vehicle accidents. The total population, including the U.S., Canada, Mexico and exports from North America is 316,357. The NHTSA was sent the Part 573 information for this recall on November 25. It has not yet posted to the NHTSA website. Featured Gallery 2008 Buick LaCrosse CXS News Source: General Motors Recalls Buick Chevrolet GM GMC Isuzu Saab SUV Sedan chevy trailblazer buick rainier isuzu ascender

GM reportedly recalling select 2014 Silverado, Sierra pickups over airbag issue

General Motors is recalling 843 2014 Chevrolet Silverado and GMC Sierra Crew Cab pickups, due to a fault with the vehicle's airbags. According to GM, the airbags may not inflate properly in the event of a crash. There haven't been any crashes or injuries associated with this recall, which is always good. Naturally, repairs will be free of charge, and GM will begin contacting affected owners soon.
GM has a lot hanging on the 2014 Chevrolet Silverado and GMC Sierra. Not only is it banking over $12,000 per vehicle on these trucks, as reported by Automotive News, but GM is counting on the Sierra and Silverado to take the fight to cross-town rivals Ford and Ram. The F-150 and Ram 1500 have been on a tear over the past few years, with fresh updates, advanced powertrains, and plenty of solid press while the GM trucks have been waiting for the 2014-model-year upgrades.
It's still entirely too early to judge the Sierra and Silverado, particularly as those 843 recalled trucks make up barely two percent of the over 40,000 units moved so far. But, as AN rightly states, these trucks are the most important vehicles to come out of GM since bankruptcy, with about 60 percent of global profits relating to pickups and SUVs. Starting an introduction of such a big product with a recall, however small, is not the preferred way to do things.