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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

Feds greenlight BMW X5 diesel sales for 2016 [UPDATE]

Update: The EPA also confirmed that the 2016 X5 diesel passed the tests in a statement: "EPA and the California Air Resources Board certified BMW's 2016 diesel X5. EPA is performing additional screening when it conducts confirmatory emissions tests before issuing a certificate. Our screening tests found no evidence of a defeat device in the 2016 BMW X5, concluding our certification review." The 2016 BMW X5 xDrive35d is the latest diesel model to pass rigorous emissions tests by the Environmental Protection Agency and prove that it doesn't circumvent regulations with a defeat device. The luxury SUV can now go on sale to customers, and BMW spokesman Hector Arellano-Belloc confirms to Autoblog the first of them should arrive at dealers around late January. The automaker previously delayed production of the new model at the Spartanburg plant until the EPA completed certification. Following Volkswagen's emissions cheating, the EPA, California Air Resources Board, and Environment Canada began stricter testing for diesel vehicles to ensure that they met regulations. The first models to get the additional scrutiny were the 2016 Chevrolet Colorado and GMC Canyon with the Duramax engine, and they passed with no problems. According to Reuters, the X5 diesel was the only other non-VW from the 2016 model year that the agencies needed to certify with this more rigorous evaluation. The 2016 X5 xDrive 35d starts at $58,695 after the $995 destination charge. A 3.0-liter six-cylinder engine sends 255 horsepower and 413 pound-feet of torque through an eight-speed automatic to the all-wheel drive system. BMW claims that the vehicle can reach 60 miles per hour in 6.5 seconds, and the 2015 model carries an EPA fuel economy rating of 24 miles per gallon city, 31 mpg highway, and 27 mpg combined. Related Video:

Jonas wreaks havoc on auto industry

Many folks along the East Coast are still stuck at home from Winter Storm Jonas' brutal snowfall over the weekend, but the blizzard had some nasty temporary effects on the auto industry, too. Winter weather emergencies kept people from leaving the house, and that spelled trouble for factories and dealers. The terrible conditions in Washington, DC, even prevented the the Washington Auto Show from opening. General Motors, Toyota, and BMW had to close factories due to the weather. BMW cited concerns for its workers driving to the plant for canceling some Friday and Saturday shifts in Spartanburg, SC, according to Automotive News. Toyota closed its Georgetown, KY, factory on Friday, and GM shut down the second shift at its Bowling Green, KY, site for that day, too. Showrooms in the blizzard's path saw a massive drop in sales over the weekend because the customers weren't coming. Some affected dealers are now trying to make the best of a bad situation by offering potential buyers even deeper discounts to get them through the door, according to Automotive News. The piles of snow also mean hours of work for employees to clean off all the cars on the lot. The good news is that none of these issues should pose longterm problems. Weather reports don't show much snow for the East Coast in the coming days, which should allow the industry quickly to return to normal.