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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

Ford cuts F-150 fuel use through CNG-capable fleet sales, EcoBoost

The possibility of $1-a-gallon fuel would make a lot of US governmental entities sit up and take notice. The state of Oklahoma and the city of Dallas are making that happen. Those two entities are buying up a bunch of Ford F-150 pickups retrofitted to run on compressed natural gas (CNG), all in the name of cost savings and emissions reduction. Oklahoma is buying 256 of the F-150s, while Dallas is buying another 65. The trucks, which cost between $6,000 and $9,500 to retrofit (on top of the original price), can run on either CNG or liquefied petroleum gas (LPG). And while that's a substantial hit, conversion costs are typically paid back in three years thanks to lower refueling costs. CNG prices are as low as $1.07 a gallon in parts of Oklahoma. How much lower? The national average price for CNG is about a buck and a half less than the $3.67 average per-gallon cost of gasoline. And CNG prices are as low as $1.07 a gallon in parts of Oklahoma, where CNG is plentiful. CNG also cuts tailpipe greenhouse gas emissions by about 20 percent compared with gasoline, while the retrofitted trucks can go as far as 450 miles from their CNG tanks in addition to the 300-mile range from their conventional tanks. That's useful in a bit state like Texas. This week, the US Energy Department trumpeted a $5.9-billion loan program that Ford accessed to upgrade its factories for production of its EcoBoost engines, noting that Ford has sold a half-million F-150 trucks with EcoBoost engines. Those trucks have collectively cut fuel use by almost 57 million gallons of gas during the past three-plus years. Check out Ford's press release on the F-150 purchases below and the Energy Department's statement about its loan program here. OKLAHOMA, DALLAS ORDER 300-PLUS CNG-CAPABLE FORD F-150 PICKUPS AS DEMAND GROWS FOR ALTERNATIVE FUEL OPTION The state of Oklahoma and its agencies to buy 256 Ford F-150 trucks prepped to run on compressed natural gas; Dallas orders 65 for its fleet 2014 F-150 available with gaseous-fuel prep option on 3.7-liter V6 engine; can run on CNG or liquefied petroleum gas (also called propane autogas) By summer, Ford will offer eight vehicles that can run on clean-burning, affordable CNG; the company is on track to sell more than 15,000 such vehicles in 2014 The state of Oklahoma, its agencies and the city of Dallas have ordered a total of 321 Ford F-150 pickups that can run on compressed natural gas.

Ford picks Fiesta ST, Transit Connect as this year's SEMA darlings

SEMA is more than nine months away, but the reveille bugle for the show has just sounded with Ford's call to aftermarket companies for its project-vehicle program. The 2014 Ford Fiesta ST and 2014 Transit Connect van and wagon are the cars The Blue Oval wants to feature, but applicants can submit project vehicles for any product except the GT500, the Raptor, or anything from Lincoln.
Submissions must be completed in two parts, the first being an email to Ford with an overview of the project, like vehicle theme, promotional plan and location display. The second part must be mailed in on company letterhead and gets down to the nuts and bolts of the vision and the provision of company bona fides. The complete proposal is due on March 1, winners will be notified by May 1. Click the link below to get all the details, and for show attendees, get ready to see some funky Fiestas and wild shaggin' wagons in Las Vegas come November.