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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

GM investing $2 billion in Tennessee plant to build Cadillac Lyriq, other EVs

DETROIT — General Motors said on Tuesday it will invest $2 billion to convert its Spring Hill, Tennessee, factory to produce electric vehicles, starting with the new Cadillac Lyriq, alongside existing combustion-engine Cadillacs. Spring Hill will be GM's third U.S. electric vehicle factory, along with existing plants in Detroit and Orion Township, Michigan. The Tennessee plant was built in 1990 as the exclusive source for GM's now-defunct Saturn brand. The Cadillac Lyriq crossover is slated to go into production in Spring Hill in late 2022, according to AutoForecast Solutions (AFS), which tracks industry production plans. AFS said it expects some electric vehicle production will be announced at a later date for a factory in Mexico. Among additional investments, GM on Tuesday said it will spend $32 million at its truck plant in Flint, Michigan, to increase production of the Chevrolet Silverado and GMC Sierra heavy-duty pickups. GM will spend $100 million to shift production of the redesigned GMC Acadia crossover from Spring Hill to a plant near Lansing, Michigan. Spring Hill will continue to build the gas-engine Cadillac XT5 and XT6 crossovers. The plant also will build other future electric vehicles in addition to the Lyriq. The automaker's plans for investing in U.S. factories comes with two weeks left in the U.S. presidential election campaign. President Donald Trump and Democratic rival Joe Biden are competing for support from auto workers in Midwestern swing states. GM Chief Executive Mary Barra has outlined plans to invest $20 billion by 2025 in new electric vehicles and battery technology. The automaker is spending $2.2 billion to overhaul and retool its Detroit-Hamtramck factory to build a GMC Hummer EV electric pickup truck in late 2021, followed by an automated robotaxi and other electric vehicles. GM builds its electric Chevrolet Bolt at a large assembly plant north of Detroit.

2020 GMC Acadia refresh brings a new engine, AT4 trim level

It's mid-cycle refresh time for the GMC Acadia, and the updated 2020 model kicks off its changes with a new face. It has a square-jawed grille seemingly pulled straight off the Sierra full-size pickup, and the size is amplified by the slender new LED headlights on either side. At the rear, the LED taillights are taller and more chiseled. A new AT4 trim level adds more visual distinction with black trim and wheels, plus all-terrain tires to make it a little more capable off road. The AT4 also boasts standard all-wheel drive. Under the revised skin, the Acadia hides one of two carryover engines, or a new turbocharged 2.0-liter inline-4. This new engine makes 230 horsepower and 258 pound-feet of torque with the help of a twin-scroll turbocharger. To make it more frugal, it's able to deactivate two of its four cylinders. The turbo engine is standard issue on the SLT and Denali trim levels. The carryover engines include a naturally aspirated 2.5-liter 4-cylinder making 193 horsepower and 188 pound-feet of torque, and a naturally aspirated 3.6-liter V6 making 310 horsepower and 271 pound-feet of torque. The V6 is standard equipment on the AT4 trim. No matter the engine, all 2020 Acadias get a 9-speed automatic transmission. The new transmission also ditches the current Acadia's mechanical shift lever in favor of an electronic shifter with the Terrain's mix of buttons and triggers. It does free up space between the seats, but the button arrangement is still as strange as it was when we first saw it in the smaller crossover. There are a handful of other little upgrades to mention. The suspension has been revised for greater comfort; the infotainment has been revised with a bigger screen, USB-C inputs and customizable profiles; and wireless phone charging is now an option. The updated Acadia goes on sale this fall, and pricing will probably be announced close to launch.