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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

Honda Clarity Series brings EV, PHEV to hydrogen fuel cell model

Honda has finally fessed up. Just as we suspected, the company's upcoming hydrogen-powered Clarity Fuel Cell vehicle will not be the only powertrain variant. Honda confirmed today that all-electric and plug-in hybrid versions of the Clarity will be joining the hydrogen car in 2017. The Clarity Fuel Cell will be available in the US in late 2016. The three vehicles are collectively called the Clarity Series. Collectively called the Clarity Series, the three vehicles will share the same platform and target different markets. As we know, the hydrogen model will only be sold in areas where refueling is possible, and that means California and, at some point, the Northeastern US. Honda said the electric version will first be available in the EV-friendly state of California and the company will explore the business case from there. The PHEV will be sold in all 50 states. No range estimate was given for the EV (yet), but the PHEV will have at least 40 miles of all-electric range. Honda will need this kind of powertrain diversification if it hopes to reach its stated goal of having two-thirds of its vehicles be plug-in or hydrogen by 2030. Of course, the next step is different models (a CUV or a truck) that have all three alt-powertrains, but we'll take what we can get for now. Related Video: Honda Takes Bold Step with Honda Clarity Series; Fuel Cell, Battery Electric and Plug-In Hybrid Variants to Leverage Common Platform •Clarity Fuel Cell gets two electrified siblings – the Clarity Electric and the Clarity Plug-in Hybrid – both launching in 2017 •New trio of Clarity vehicles provide unparalleled choices to customers through three different electric powertrain options •All Clarity vehicles will offer spacious, five-passenger seating, premium features and interior appointments; consumers can learn more at http://www.automobiles.honda.com/Clarity DETROIT, April 21, 2016 – Honda today announced that the upcoming Clarity Fuel Cell will be joined by two additional variants, the Clarity Electric and Clarity Plug-in Hybrid, launching in the U.S. in 2017. The addition of two new Clarity vehicles, based on the same platform underpinning the new Clarity Fuel Cell, makes Clarity the first vehicle in the industry to offer fuel cell, electric and plug-in hybrid technology on one model platform, offering Honda customers an expanded array of electrified vehicle choices to suit their individual tastes and driving needs. Following the U.S.

Honda exclusive to McLaren at least until 2017

Next year Honda will return to Formula One after a seven-year absence, bringing the first Japanese automaker to compete in the top-tier racing series back into the fold. But though it started in 1964 much as it ended in 2008, running its own team (much like Ferrari and Mercedes do today), its new F1 program will see it revert to engine-supplier status (like Renault did when it sold its team to Lotus).
The arrangement will be exclusive to McLaren for the 2015 Formula One World Championship. But what fans and insiders alike have been wondering is how it might expand after that. Well, now we have at least part of the answer.
According to the F1 business insiders at Pitpass, Honda motorsport chief Yasuhisa Arai told a group of journalists at this past weekend's race in Shanghai that the deal with McLaren will be exclusive not only in 2015, but also in 2016. In other words, it won't be until 2017 at the earliest before Honda might begin supplying engines to any other teams, if at all.