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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

Honda promises all-new Ridgeline within two years

Despite an aging design and low sales, Honda has remained committed to its Ridgeline pickup truck. Now, in its first official confirmation of a next-gen Ridgeline, Honda has released a teaser sketch (click to enlarge) of the new truck and promised a debut within two years, as previously reported.
The sketch shows the direction that Honda is planning for its new truck, which appears to ditch the single-piece body in favor of a more conventional pickup truck design. Even with the new design, it's not clear if Honda will move away from the Ridgeline's car-based platform shared with the Odyssey, Pilot and Accord. Sales of the Ridgeline dipped to below 10,000 units in 2011 but have increased steadily over the last two years (including 29 percent so far in 2013) with slightly more than 16,000 units on the year.
As for the current Ridgeline, Honda will wind down production at the Lincoln, AL assembly plant sometime during the middle of next year. The press release for the announcement is posted below.

Recharge Wrap-up: Charging in Iceland, Smart "For" campaign, Honda open sources Smart Home

Iceland's EV charging network is expanding by 200 units. A subsidiary of Northern Lights Energy called EVEN is providing and installing the rapid chargers, which it hopes to have installed by the end of the year. EVEN's Gisli Gislasson says, "We couldn't wait for the government and decided to do our part in this." Iceland's government hopes to have 10 percent of the cars on its road powered by sustainable fuels by 2020. Read more at Iceland Review. Argonne National Laboratory is working to create universal charging for electric vehicles. Through its new Electric Vehicle Interoperability Center, the group is studying ways to standardize charging so any type of electric vehicle in any country can charge at any charging station. Additionally, the research is working on ways to better integrate electric cars to a smart grid, to the point where EVs could even act as part of the grid, charging when they need it and providing electricity during peak hours. Go to Phys.org for more details. Smart has launched its "For" campaign in Europe. The maker of the tiny city cars is reaching out to the public through updated branding, ads through various channels and social media engagement to get people thinking about Smart in fresh ways. The campaign emphasizes the "For" idea, as in "For challenging the status quo," "For loving the city," etc. Also as part of the campaign, Smart will be embarking on a Europe-wide roadshow to 15 different cities, where the public can learn more about the cars – particularly the Fortwo and Forfour models – and even arrange a test drive. Read more in the press release below. Honda is publicly sharing plans associated with its Smart Home project. The project, which goes beyond cars and into the home to look for ways to live efficiently and reduce CO2 emissions, involves sustainable energy and heating and cooling methods, smart lighting, sustainable building materials and waste management, passive design and, of course, vehicle charging. Now, technical details such as architectural plans, mechanical drawings, furniture specs and CAD data will be open-source and publicly available for any interested parties. Check out the Honda Smart Home website to learn more, or to start downloading the plans yourself. "FOR" brand campaign: smart: More than just a car Functionality, innovation and joie de vivre – these are the brand values that make smart so unique. smart sees itself as a future-oriented, visionary brand that stands for a great idea.