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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

Honda recalls Accord to replace airbag control unit

The Basics: Honda will recall 341,444 examples of the 2008-2010 Accord sedan in the US. The Problem: Moisture can enter the supplemental restraint system electronic control unit and cause corrosion. Over time, this could cause the part to fail, which might prevent the airbags from deploying in a crash. Injuries/Deaths: Honda confirms two injuries from this problem. The Fix: Dealers will replace the supplemental restraint system electronic control unit. If You Own One: Honda won't begin the recall until fall 2016 because of the large number of vehicles that will need the repair. The company will inform owners about the problem by mail in mid-March and will notify them again when the parts are available. However, if owners see the supplemental restraint system warning light illuminate before the recall begins, they can visit a dealer for a diagnostic check. If technicians find the problem, then they can replace electronic control unit immediately from Honda's limited supply of replacement parts. Related Video: Statement by American Honda Regarding SRS Electronic Control Unit Recall: 2008-2010 Honda Accord Sedan Feb 3, 2016 - TORRANCE, Calif. Approximately 341,000 Accord Sedans affected in the United States The SRS electronic control unit will be replaced, free of charge Two injuries have been confirmed related to this issue American Honda will voluntarily recall approximately 341,000 Honda Accord Sedans from the 2008-2010 model years in the U.S. to replace the Supplemental Restraint System (SRS) electronic control unit. Manufacturing process issues may allow moisture to enter the circuitry within the SRS electronic control unit, which, over time, can cause corrosion and eventual malfunction of the unit. If the SRS control unit fails from this scenario, the SRS indicator will illuminate on the vehicle's dashboard, and, in the event of a vehicle crash, the airbags may not deploy, increasing the risk of injury. Honda has confirmed two injuries related to this issue. A new SRS control unit will be installed in affected vehicles, free of charge. However, due to the large volume of new parts needed to repair affected units, the necessary parts will not be available until fall 2016. As a result, owners of affected vehicles will be informed of the recall in an initial mailed notification letter in mid-March 2016. A second notification letter will be sent to inform owners when parts become available.

Analysts say Honda's growing woes in Europe not just the economy

There is no denying that the European auto market is taking its lumps right now - just ask Peugeot - but Honda might be taking this downturn on the chin a little harder than some of the other Japanese automakers doing business on the continent. Automotive News Europe is reporting that things have gotten so bad for Honda that it will be cutting 800 workers from Swindon, England plant that builds the CR-V, Civic and Jazz (a.k.a. Fit). This will be the first time Honda has made such cuts in more than 20 years.
Despite an increase in output last year over 2011 (165,607 units compared to 97,459), the Swindon plant is still running well below its full capacity (250,000/year), and its 66 percent capacity is less than the expected breakeven point of industry analysts (75 to 80 percent). Unlike in the US, however, Honda's new CR-V and Civic aren't selling well, and the similarly sized Nissan Qashqai is outselling the CR-V at a rate of more than five to one. Slow CR-V sales are blamed on a relatively high price and the crossover's conservative styling. On the complete opposite side of the spectrum, the report notes that Nissan continues to experience growth at its UK operations, leading analysts to suggest that Honda can't blame the sour economy for much of its woes.