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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

GM planning to put its fullsize pickups on a big diet, too

General Motors is just coming off a complete redesign of the Chevrolet Silverado and GMC Sierra for 2014, but in the US fullsize truck market, there is no rest for the weary. According to Reuters, plans are already unfurling for both trucks to drop pounds from their curb weight over the next few years, but this will unlikely be able to keep pace with the 700-pound diet targeted for the next-generation Ford F-150, a truck expected to debut late next year.
The biggest weight reduction for these trucks might not be available until the next full redesign, which will likely happen around 2019, but the article says that smaller updates could shave pounds in the meantime. Two examples given include an "aluminum-intensive" version of the Silverado that could shed 250 pounds and debut around the same time as the lighter-weight, aluminum-bodied 2015 Ford, and there is also talk of reducing weight for driveline components such as axles and driveshafts. These changes are all part of an attempt to meet strict new fuel economy standards coming in 2017, targets which will get even tougher in 2025.

2022 Hummer EV Edition 1 pickups ready to go to customers

It's official: Two years after GM announced the electric GMC Hummer pickup, the first couple dozen units have left the line at the GM Factory Zero Detroit-Hamtramck Assembly Center, according to GM president Mark Reuss. In an interview with CNBC to celebrate the milestone, Reuss said 17 Hummer EVs are ready for delivery to customers. This makes the Hummer the first of GM's new Ultium-based EVs to leave the factory, and the second electric pickup on the market after the Rivian R1T. The first 1,200 Hummer EVs made will be Edition 1 models, all of which are Interstellar White outside with Lunar Horizon interiors and bronze badging. Each of the $112,595 pickups is powered by three Ultium motors producing a GM-estimated 1,000 horsepower and 11,500 pound-feet of torque, loaded with features like height-adjusting adaptive suspension, skid rails and rock sliders, 35-inch tires, the diagonal-driving CrabWalk, the launch control system Watts to Freedom that unlocks a three-second sprint to 60 miles per hour, and Super Cruise. Range is a GM-estimated 329 miles when the 200-kWh battery is fully charged. As these filter out to eager owners, GM is prepping the next four phases of the Hummer rollout. About a year from now, in autumn of 2022, Factory Zero will begin production of the first widely available Hummer, the EV3X pickup that starts at $99,995 before destination. Three Ultium motors will provide an estimated 800 horsepower and 9,500 pound-feet of torque to a range estimated beyond 300 miles. Spring of 2023 is expected to deliver the Hummer EV2X pickup at an MSRP of $89,995, utilizing two motors producing a total 625 hp and 7,400 lb-ft over a range also estimated to go beyond 300 miles. Around the same time, the first units of the $105,595 Hummer SUV Edition 1 are planned to head down lines at Factory Zero. Finally, in the spring of 2024, the entry-level $79,995 Hummer EV2 pickup and its two-motor powertrain should arrive, making the same output as the EV2X, but only good for a range of around 250 miles. That won't be all we see from Factory Zero, either. GM invested $2.2 billion in the Detroit-Hamtramck plant that once built bread-and-butter GM fare like the Chevrolet Impala, Buick LaCrosse, and Oldsmobile Toronado in order to turn the facility into its first EV base of manufacturing operations for Ultium products. The battery-electric Chevrolet Silverado and GMC Sierra pickups will be built there, as will the Cruise Origin robotaxi.