2006 Volkswagen Jetta Value Edition Pzev 4dr Sedan (2.5l I5 5m) on 2040-cars

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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

Skoda unveils Volkswagen Up!-based Citigo

This is the all-new Skoda Citigo, and if you're thinking that it looks rather familiar, that's because its Volkswagen-badged kin recently debuted at the 2011 Frankfurt Motor Show. That's right, the long-rumored Skoda version of Volkswagen's new Up! city car has finally arrived.
Buyers will have a choice of two 1.0-liter three-cylinder engines - one with 59 horsepower, the other with a 74 hp and a blistering 106 mph top speed - both mated to a five-speed manual transmission. Powerful they are not, but these three-bangers should prove to be extremely efficient, with Skoda quoting fuel economy numbers of 62.8 and 60.1 miles per gallon, respectively (on the European cycle).
Being a Skoda, the Citigo will go on sale in its home market of the Czech Republic this fall, with the rest of Europe getting the car next summer. Follow the jump for Skoda's official release.

Volkswagen reveals Golf GTI Clubsport concept at Worthersee

The various brands under the Volkswagen Group umbrella are bringing a slew of hot hatch concepts to the GTI-Treffen in Worthersee, Austria, this week – but the gathering wouldn't be complete without a version of the headline Volkswagen Golf GTI. And here it is. Previewed with initial details and a trio of design sketches last week, VW has now released a proper array of images showing the GTI Clubsport concept. The enhanced GTI packs an upgraded version of the stock version's 2.0-liter turbo four with 261 horsepower on tap, favorably splitting the difference between the standard GTI with the Performance package and the more potent Golf R. An overboost function even kicks in an extra 10-percent more horsepower to bring peak output up to 287 hp – just a few horses shy of the R's 292, but driving only the front wheels. As you can see, the Clubsport concept also features a more aggressive aero kit as well as upgraded rolling stock with semi-slick rubber. Most, if not all, of these enhancements are earmarked to find their way onto a 40th anniversary edition GTI, but we're unlikely to see that model in US showrooms. World premiere of the Golf GTI Clubsport at Lake Worthersee - Exclusive anniversary model for 40th birthday of the GTI - Golf GTI Clubsport debuts with 265 PS and boost function Next year, the Golf GTI celebrates its 40th birthday. Volkswagen is marking this historic event with a progressive anniversary model: the new Golf GTI Clubsport. Volkswagen will be showcasing the Golf GTI Clubsport on 14th May as part of the legendary GTI meet at Lake Worthersee, when it will make its world premiere in the form of a near-production concept car. With a power output of 195 kW / 265 PS (35 PS more than the Golf GTI Performance) and top performance temporarily increased by around a further 10 per cent thanks to a boost function, the Golf GTI Clubsport is set to take off at the start of 2016 as the most powerful production 'GTI' yet. The anniversary model is being launched not only with an extremely powerful engine, but also with an individualised interior and exclusive bodywork details. The design modifications include a completely new front bumper, new side sills, a new and aerodynamically highly innovative roof-edge spoiler and a specially developed rear diffuser. All of these features were designed with the aim of further enhancing the GTI's performance and of thereby bringing form and function into perfect harmony.