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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

Mazda hard at work on Skyactiv 2 engine technology

As Mazda continues the current rollout of its still-new Skyactiv technology, the automaker is already looking at improving its family of engines for even better fuel economy and emissions reductions. Automotive News reports that with stricter fuel economy and emissions regulations planned for 2020 and 2025 in Europe, Mazda will likely release engines with next-generation Skyactiv 2 technology by the end of this decade, and Skyactiv 3 units just five years later.
The latter is expected to focus on improved engine cooling and lessening energy losses, but the big news in AN's report is that the next-gen Skyactiv 2 engines will use Homogeneous Charge Compression Ignition, or HCCI. This type of ignition is very similar to how a diesel engine operates (with high compression and using the compression stroke for fuel combustion rather than spark plugs), a method said to provide a cleaner and more efficient fuel burn - to the tune of a 30-percent improvement in fuel economy compared to current Skyactiv engines. Other automakers, including Hyundai, have already announced they are developing HCCI powerplants with similar technology and characteristics, so Mazda likely won't be a lone wolf here.
Equipped with HCCI technology, Mazda figures to be able to compete with larger automakers in terms of fuel economy and emissions without resorting to hybrid powertrains, continuously variable transmissions or automatics relying on more forward gears (eight or more) for optimal efficiency. Some of the challenges of HCCI, according to AN, include the need for better engine cooling, risk of misfire at high and low rpm and uneven engine performance based on fuel properties.

Mazdaspeed2 supermini hot hatch under consideration

Though the Ford Fiesta ST and Fiat 500 Abarth (and arguably the Mini Cooper S) may stand pretty much alone in the North American market, in overseas markets, supermini hot hatches are a big deal. Unfortunately, challengers like the Volkswagen Polo GTI, Seat Ibiza Cupra and Renault Clio RS 200 Turbo never make it to our showrooms, but word has it that there's soon to be a new entry on the market.
That would be the Mazdaspeed2, which would be badged in certain markets as the Mazda2 MPS. Speaking with Australian site CarAdvice.com.au at the launch of the Mazda2 on which it would be based, the Japanese automaker's global sales chief and the hatchback's deputy product manager hinted that such a product is definitely being discussed, even if it hasn't yet been approved.
This wouldn't be the first time such a notion were entertained, as Mazda has shown numerous performance concepts based on the previous Mazda2/Demio over the years, but none have come to fruition.