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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

Ford to pay $17.35 million over Escape recall

Ford had a bit of a recall spree around this time last year, with a pair of issues on the then-new 2013 Escape, followed by a recall of 423,000 2001 to 2004 Escapes because they might accelerate of their own accord. Accordingly, Uncle Sam pasted Ford with a $17.35 million fine because it took too long to inform customers, according to a report from Automotive News.
Ford agreed to settle with the National Highway Traffic Safety Administration, accepting the fine but not admitting fault. The recall, which afflicted Escapes with the 3.0-liter V-6 along with 217,000 Mazda Tributes from 2001 to 2006 and 2008, was due to faulty gas pedals that could stay down after a driver removed their foot.
Ford issued a statement regarding the fine, saying, "We take the safety of our customers seriously and continuously evaluate our processes for improvements. While we are confident in our current processes for quickly identifying and addressing potential vehicle issues, Ford agreed to this settlement to avoid a lengthy dispute with the government."

Yearly auto recall record demolished in 6 months

With nearly 40 million vehicles under repair campaigns and counting, 2014 will almost certainly go down as the year of the automotive recall. At just past the halfway mark, we are already at record levels, and there aren't any signs that the epidemic is slowing. General Motors' latest 8.4 million vehicle recall in the US puts the industry over the top for the title of the most cars with fixes pending from automakers ever. That's a prize no one ever wants to receive. According to TheDetroitBureau.com, the US recall total has hit 39.85-million vehicles to surpass the previous record of 33.01 million in 2004. Perhaps more surprising, with over 26 million repairs pending, it's still quite possibly that GM could recall more vehicles by the end of the year than the 27.96-million unit total of the entire US auto industry last year. With over 40 campaigns under its belt in 2014, the roughly one million cars it would take would hardly come as a surprise at this point, especially with increased government scrutiny into the Detroit automaker's processes. The pace of recalls started off relatively normal this year, with just a smattering of campaigns. The most surprising early on was Aston Martin calling in about 75 percent of its output since 2007 due to counterfeit plastic, but with just a few thousand cars, it was relatively tiny in pure numbers. GM really kicked things off soon after, but we didn't know it at the time. It issued its first bulletin for 778,000 Cobalt compacts in early February. Things only ballooned from there as more models were added to its growing ignition switch problem. The onslaught of announcements from every major automaker hasn't abated since then. Some industry executives are trying to put a positive spin on the situation. "With what's transpired (in recent months), there's a higher level of scrutiny," said Joe Hinrichs, Ford president of the Americas, to TheDetroitBureau.com. He believes that automakers are looking at data much more thoroughly than before, and it means better customer safety. Still, many consumers probably wish these problems had been found before their car went on sale.