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Toyota, Mazda $1.6 billion plant goes to Alabama, sources say

Alabama will be the site of a new $1.6 billion Toyota and Mazda auto plant, a victory for President Donald Trump who had prodded manufacturers to build new U.S. facilities and threatened tariffs on foreign production, sources said on Tuesday. The plant, which will employ up to 4,000 people and produce about 300,000 vehicles a year, will be located in Huntsville, Ala., and is a boon for the state, where Toyota has a large engine plant and an existing network of automotive suppliers. A formal announcement by company and state officials is expected on Wednesday in Montgomery, sources briefed on the matter said. The new plant — in a state Trump won by 28 points in 2016 — could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs. The companies said they expect the plant to open in 2021. Trump tweeted in March he wanted "new plants to be built here for cars sold here." The White House did not immediately comment on Tuesday. The announcement also comes at a time of declining U.S. auto industry sales, so it could exacerbate overcapacity and add pressure to cut prices. U.S. new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018. Details of an anticipated tax and incentive package for the investment were not yet known. It has been reported the companies sought at least $1 billion in incentives. A Toyota spokesman declined to comment, except to say an announcement was expected soon. A Mazda spokeswoman also declined to comment. In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina. Local media last month said the leading site under consideration was in northern Alabama's Limestone County, near Toyota's large engine plant in Huntsville. In September, Toyota announced a $106 million technology upgrade for the Huntsville plant. A Chamber of Commerce of Huntsville website for the "Huntsville Mega Site" touts the fact it has been "certified as development-ready." The commerce chamber, local and state officials declined to comment on Tuesday on plans for the plant. A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the U.S. market in Mexico. "Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S.

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

Mazda patents show rotary engine for range-extended EV

Two years ago, Mazda introduced a fascinating range-extended electric car called the Mazda2 RE Range-Extender. It took an electric Mazda2, and dropped in an itty-bitty 330cc rotary engine. It wasn't the rotary-powered sports car we had hoped for, but it seemed like a unique way to keep the quirky engine alive and kicking. But not long after the car's reveal, it seemed to disappear. Now the basic idea has resurfaced with a few modern updates in a couple of US patents. The first patent is pretty straightforward and describes a range-extended EV similar to the BMW i3. At the front is an electric motor driving the front wheels. At the back is an internal combustion engine that powers an electric generator. In the middle is a lithium-ion battery for storing and delivering electricity. It's the same set-up as that Mazda2. The second patent is for an engine start-and-stop system, but specifically for rotary engines. The system is designed to shut off a rotary engine when not needed, much as modern piston engines do. It also stops the rotor in a position that closes the intake port to ensure no fuel or exhaust emissions slip out through the intake tract. This is necessary since there are no valves in a rotary, and air and exhaust come through ports that are "opened" and "closed" by the rotor itself. The patent also describes the possibility of firing a spark plug after the fuel has been cut to eliminate any leftover fuel emissions. This system would theoretically improve a rotary engine's fuel economy and emissions significantly, which would be a boon as those are two of the rotary's major weaknesses. The rotary-engine patent also includes the same range-extended powertrain drawing as the first patent. It's there as a description of a possible application. And in such an application, where the rotary wouldn't have to run all the time, the system could take advantage of the rotary's inherent strengths. Weight can be kept low thanks to the engine's small dimensions, which should help in keeping the car sprightly and efficient. Rotaries are renowned for smoothness, too, so it shouldn't need too much refining and sound deadening, the latter of which adds more weight. The small size would also help with packaging, leaving more space for people, cargo, or possibly batteries. And since it has been patented, the company may be looking to bring the system to market.