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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

BMW celebrates its awesome '80s M535i

BMW recently celebrated the 30th anniversary of the M5 with a very limited, special edition of the super sedan. And even before the original version was transporting German executives at ludicrous speeds down the Autobahn, the folks in the M department tried their hand at improving the 5 Series with the M535i. Only offered in 1980 and 1981, the company made just 1,650 of these top-spec models, but they sowed the seeds for the future. In this video looking back at the M535i, you really see the automaker from a completely different era. As an outgrowth of the company's touring car racing efforts, the special model packs a 3.5-liter inline-six rated at 218 horsepower, a powertrain capable of accelerating the M535i to 62 miles per hour in 7.5 seconds via a dogleg five-speed gearbox. This take on the 5 Series is also a visual treat because it mixes the standard version's skinny A-pillar and thick C-pillar styling with some era-specific upgrades. The corduroy-covered Recaro seats and groovy multicolor stripes down the side, on the air dam and at the rear are especially fun touches. While the video's announcer is a bit dull, there's nothing boring about this rare, vintage BMW. Take a trip back in time with this clip, it's a nice bookend to the Petrolicious E28 5 Series family video we showed you yesterday. News Source: BMW via YouTube BMW Automotive History Performance Classics Videos Sedan

BMW i3 range-extender lawsuit supports Tesla's store argument

Tesla's argument that it needs to own its stores in order to sell its electric vehicles and give customers better information is about to get bolstered by an unlikely source: BMW. The German automaker is the subject of a class-action lawsuit stemming from the performance of the range-extended version of its i3 plug-in. And at least one green-car advocate and i3 owner says the problem could have been avoided by better education at BMW dealerships. The lawsuit was filed in California by some owners of the BMW i3 REx, i.e. the version that's equipped with a gas-powered "range extender," according to Green Car Reports. The issue is that, when the car's battery starts running low and the powertrain is subjected to extended stress, such as a long uphill highway stretch or a fully loaded vehicle, the car can slow from highway speeds to as slow as 45 miles per hour without warning. The claim states that the vehicle can post a danger as a result, while BMW has declined comment, citing pending litigation. Meanwhile, Tom Moloughney, owner of the first BMW i3 REx to be sold in the US, says the problem might rest at the dealership level. Moloughney says that if dealers explained the car's mechanics better – especially the fact that the range extender is essentially a 34-horsepower, two-cylinder motorcycle engine whose power is limited – drivers would be better informed about what could happen when the battery power is sapped at highway speeds. While Tesla EVs don't have the same sort of REx powertrain, this argument nicely dovetails with what Tesla Motors has been saying for a long time, that its cars should only be sold at company-owned stores because third-party dealers are less likely to understand and explain the nuances of electric vehicles. No word on whether Elon Musk's lobbyists are getting together with lawyers representing the Ultimate Driving Machine. Related Video: Featured Gallery 2014 BMW i3: First Drive View 33 Photos News Source: Green Car Reports via Automotive News-sub.req. Government/Legal Green BMW Electric Hybrid lawsuit range extender tom moloughney