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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

Red Bull may seek engines from Ferrari after Mercedes snub

Red Bull and Renault's fractured relationship is pushing the Austrian F1 team to find a new engine provider. But after a trip across the German border to chat with Mercedes-Benz proved fruitless, the team is apparently set to head across its home country's southern border, and into Italy. Yep, Red Bull Ferrari could be a thing next season. According to RBR boss Christian Horner, the company is just doing "necessary due diligence" in contacting other engine suppliers, although he's willfully admitted to Germany's Bild newspaper that the "idea of Mercedes is finished," BBC Sport reports. It wasn't so much that Mercedes and Red Bull couldn't come to financial agreement – Red Bull owner Dietrich Mateschitz views throwing money into F1 in much the same way you or I toss pennies into the mall fountain – but rather that the Germans had no interest in supplying the best engines on the grid to the factory team's perennial rival. BBC Sport seems to think that fact, along with what the outlet calls Red Bull's "antagonistic" relationship with engine suppliers, killed the Mercedes deal. Honda and RBR aren't likely to happen either, thanks to McLaren (not that we think Red Bull would approach the Japanese, which have struggled mightily all season long). By process of elimination, that just leaves Ferrari. Scuderia Ferrari Team Principal Maurizio Arrivabene confirmed that his team can accommodate Red Bull's engine needs, and that he wasn't concerned with the idea of a Ferrari engine in an Adrian Newey-designed body. "In theory they have big names, with Newey as chief designer and it is easy to think that if you give them the engine they will build a scary chassis, which means they will be really competitive," Arrivabene told BBC Sport. "Concerning my team, my engineers and aerodynamicists know their own jobs. For that reason I don't have a problem, and competition is nice when you have a stronger competitor." "This doesn't mean tomorrow morning we will give our engines to Red Bull or Toro Rosso," Arrivabene added. And it's that statement we'd suggest remembering. There are, after all, still seven races left in the 2015 season, which is quite a lot of time for new and different developments within the sport's notoriously gruesome political process. In other words, don't count on an announcement from any team or manufacturer for at least a few more races. Related Video:

Smart will go electric-only in United States and Canada

By 2018, the Smart car brand will be only known as an electric vehicle manufacturer in the US. According to Automotive News, sales of gasoline-powered Smart cars will cease later this year, and Daimler will develop the product portfolio into a solely electrified one. This coincides with the upcoming launch of the new generation Smart ForTwo electric drive models this summer. Automotive News claims to have obtained a letter from Mercedes-Benz USA CEO Dietmar Exler sent to US dealers. In it, he underlines the decision to go electric-only, saying "developments within the micro-car segment present some challenges for the current Smart product portfolio," and that the change will only affect North American sales. Production of US-destined gasoline-powered Smarts will cease in April, and sales will continue until stock runs out. The current generation has been on sale from 2015, and it hasn't reached the 2014 sales peak of 10.453 units of the previous generation; last year, there were little more than 6.200 Smarts sold in the States. The first electric drive Smarts were unveiled a decade ago, but they became available in the USA five years later, initially via various trial programs, including Car2Go fleets. Related Video: