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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

Hertz and GM team up to put 175,000 rental EVs on the road

Hertz and General Motors have announced a significant partnership that will send up to 175,000 electric vehicles into rental fleets across the country. The deal will unfold over the next five years and include vehicles from all GM brands.   The partnership will run through 2027. Hertz estimates that the electric fleet can save as many as 8 billion gasoline-powered miles, removing 1.8 million metric tons of carbon dioxide-equivalent emissions from the air. Hertz says it will invest in becoming the largest renter of EVs in North America and notes that it already has tens of thousands available at 500 locations in 38 states. By the end of 2024, it plans to electrify a quarter of its fleet. Electric rental cars are a great way for travelers wanting to avoid gas, and they make excellent urban commuter cars. Hertz will also likely save a few dollars by avoiding oil changes and other routine maintenance that gas engines need. However, a hidden societal benefit of this deal may come when Hertz’s EV rental customers begin shopping for new cars. Many people are skeptical of EVs for various reasons, including range, charging, ease of operation, and cost. Giving people a low-risk introduction to EVs and the ability to test-drive one without a pressuring salesperson could drive more people to electrics. At the same time, there's also the risk that renters wanting to take their Hertz-GM EV on a road trip into sparsely populated areas may return with charging and range-related horror stories. Hertz currently doesnÂ’t ask what youÂ’re planning to do with your rental, but it does offer a chat service for questions, and range information is presented clearly on each vehicle. Related video: 2023 Cadillac Lyriq walkaround

2022 Chevrolet Silverado and GMC Sierra now cost more, again

GM Authority put Chevrolet and GMC pickup truck prices under the microscope, spying the same macroscopic issues none of us can avoid seeing: Price increases. The 2022 Chevy Silverado 1500 and 2022 GMC Sierra 1500 have been hit with their third price increases this year. The Heavy Duty versions of those same trucks have been given their fourth price increases this year. Starting with the light-duty options, they've been rung up for another $900 across the board, which breaks down to $800 added to the MSRP and $100 added to the destination charge. The mandatory cost for shipping a truck from the factory to the dealer is now $1,795. That destination fee is now more than 5% of the purchase price of the least expensive 2022 Silverado, the Regular Cab Work Truck trim with a Standard Bed and 2.7-liter turbocharged four-cylinder retailing for $36,395 after destination. And that price is $3,200 more than the initial list price from last December. At the other end, the Silverado ZR2 is up $3,400. Average that out, and the Silverado's MSRP has gone up by nearly $700 every month since initial pricing came out. On the GMC side, the bidding starts at $37,195 for the Regular Cab Pro trim with a Standard Bed, a $4,700 increase over pricing announced last October.  Stepping up a tow rating or two, the Silverado HD is now $1,100 more expensive — $1,000 tacked onto the MSRP, the destination charge plumped another $100 to $1,795. The Silvy 2500 HD now starts at $41,295. The Sierra HD turns the screw a few more degrees, going up by $2,100 after the $100 increase for destination. The low bar for the Sierra 2500 HD is $41,995, a $4,100 rise over the price when it hit dealer lots last summer. Whew. Anyone know where the exit is for this "new normal?" Related video: