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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

West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

Honda Accord barely edges Toyota Prius as California's best-selling car

The Toyota Prius definitely still matters, at least to car buyers in California. The long-lived hybrid was the state's second-bestselling vehicle in 2014 by moving 71,210 units across all of its variants, including the Prius C. The Toyota was the leader there in 2012 and 2013 but lost the sales crown this time – just barely – to the Honda Accord, which sold 71,578 examples. The results in the Golden State illustrate just how different the auto market there is compared to the rest of the country. Prius sales slumped last year nationwide with a drop of 11.5 percent to 207,372 examples sold. However, according to the LA Times, the model's numbers ticked up two percent in California in 2014. Taken by itself, the standard hatchback model would have been the sixth-bestseller there, with 39,036 units purchased. While the Toyota showed modest growth, it wasn't enough to fend off the Accord's 17 percent year-over-year jump in the state, though. According to the Los Angeles Times, the rest of the California top ten included the Honda Civic, Toyota Camry, Corolla, Ford F-Series, CR-V, Nissan Altima, Sentra and Chevrolet Silverado, respectively. That list was quite a departure from the nationwide bestsellers in 2014, which was led by the F-Series, Silverado and Ram pickups. The Camry was the country's foremost car on the list in fourth place overall to beat the Accord in fifth. The Prius didn't break into the ten biggest sellers in the US last year. Related Video: Featured Gallery 2014 Honda Accord V6 Touring: Review View 42 Photos News Source: LA TimesImage Credit: Copyright 2015 Drew Phillips / AOL Green Honda Toyota Car Buying Hatchback Hybrid Sedan sales California hybrid sales toyota prius c