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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

2022 GMC Sierra Denali caught towing in new spy photos

The GMC Sierra 1500 was just redesigned for the 2019 model year, but the hyper-competitive half-ton segment will see an updated Denali offering for 2022 and, as we can see from these spy photos, GMC is already testing prototypes.  There's quite a bit covered up on this particular example, leading us to believe the Sierra Denali's refresh will be on the heavy side. We're not surprised, as GM's usually comfortable position within the full-size segment has been eroded over the past few years, largely due to intrusion into the luxury market on the part of both Ford and Ram.  From these shots, we can tell the Sierra Denali will get at least one new grille (if not several of them), new headlights, new bumpers, new bed sides, new tail lights and perhaps even an updated tailgate, though we expect that will matter more on trucks not equipped with the MultiPro multi-function tailgate option, which tends to take up a lot of stylistic real estate.  As comprehensive as that may sound, it's nothing compared to what GMC has in store for the Denali's upgraded interior. Super Cruise — GM's highway semi-self-driving suite — will headline the updates. This is big news for two reasons. For starters, Super Cruise has thus far been relegated only to Cadillac, so the Denali will likely be among the first outside of that model line to offer it. GM also claims that the version of Super Cruise coming to the Sierra is capable of towing. Yes, hands-free towing. Besides Super Cruise the 2022 Sierra is getting a fully digital instrument cluster as part of what appears to be a fairly comprehensive interior redesign, different from both the current Sierra, standard Yukon and Yukon Denali interiors.  Related Video:

GM reportedly recalling select 2014 Silverado, Sierra pickups over airbag issue

General Motors is recalling 843 2014 Chevrolet Silverado and GMC Sierra Crew Cab pickups, due to a fault with the vehicle's airbags. According to GM, the airbags may not inflate properly in the event of a crash. There haven't been any crashes or injuries associated with this recall, which is always good. Naturally, repairs will be free of charge, and GM will begin contacting affected owners soon.
GM has a lot hanging on the 2014 Chevrolet Silverado and GMC Sierra. Not only is it banking over $12,000 per vehicle on these trucks, as reported by Automotive News, but GM is counting on the Sierra and Silverado to take the fight to cross-town rivals Ford and Ram. The F-150 and Ram 1500 have been on a tear over the past few years, with fresh updates, advanced powertrains, and plenty of solid press while the GM trucks have been waiting for the 2014-model-year upgrades.
It's still entirely too early to judge the Sierra and Silverado, particularly as those 843 recalled trucks make up barely two percent of the over 40,000 units moved so far. But, as AN rightly states, these trucks are the most important vehicles to come out of GM since bankruptcy, with about 60 percent of global profits relating to pickups and SUVs. Starting an introduction of such a big product with a recall, however small, is not the preferred way to do things.