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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 and Isuzu announce hydrogen partnership for heavy-duty trucks

TOKYO — Japan's Honda and Isuzu on Wednesday said they would jointly research the use of hydrogen fuel cells to power heavy-duty trucks, looking to expand fuel cell use by applying the zero-emission technology to larger vehicles. As part of a two-year deal, Isuzu will test Honda's fuel cell powertrain, which was designed for passenger cars, in Isuzu's commercial trucks, the companies said, which could pave the way for using the technology in a wider range of vehicles. Automakers are looking to develop more electric vehicles (EVs) to comply with tightening global emissions regulations. Many see battery-powered EVs as a solution for passenger cars in urban settings, but a growing number see hydrogen fuel cells as an effective way to power trucks, buses and other big vehicles. "Although we have done extensive R&D into passenger FCVs (fuel cell vehicles), we have not been able to study how best to apply the technology to commercial vehicles," a Honda spokesman told reporters at a briefing. "This partnership will allow us to do that." Fuel cell vehicles generate their own electricity using hydrogen stored in onboard tanks. This enables them to travel longer distances and refuel more quickly than battery EVs, while using less costly energy storage systems. "We think that FCV technology is well suited for heavier trucks which travel longer distances, and this partnership will enable us to examine this further," an Isuzu spokeswoman said, adding that the truck maker was also developing various lower-carbon powertrains including battery-electric technology for shorter-distance vehicles. With its Clarity Fuel Cell sedan, Honda is one of a handful of automakers which have developed and marketed fuel cell-powered passenger cars. Light- and medium-sized truck specialist Isuzu has for years has focused on diesel engine technology and has yet to market fully electric vehicles. But a price tag starting around $70,000 for the Clarity and scant hydrogen fueling infrastructure globally, Honda has seen limited take-up of that model and other FCVs since they began marketing them around 2015. In 2018 Honda sold just 654 Clarity FCVs, which are available only in Japan and the United States through leasing programs, compared with Honda's total annual global sales of 5.23 million cars.

Alonso wants an NSX, but did Honda block him from Le Mans?

One of the biggest changes in store for the 2015 Formula One World Championship will see Fernando Alonso moving back to McLaren. That means he'll be driving under Honda power for the first time, after spending the bulk of his career driving for Renault and Ferrari. And being Honda's new poster child, as the two-time World Champion is fast discovering, has its advantages and its drawbacks. According to the latest reports, Alonso had been negotiating a clause in his contract with McLaren that could have seen him driving a Porsche 919 Hybrid at Le Mans this year, but Honda reportedly stepped in at the last minute and scuttled the plan. The drive would have been Alonso's first in the famous 24-hour race, after having had the honor of waving the flag at La Sarthe last summer. In one of the wilder rumors that emerged during the prolonged silence over his move for this season, the Spaniard was also linked to a potential return for Ferrari to Le Mans. That prospect came to naught, and now the Porsche deal has been wheeled into the garage, as well. The upcoming F1 season is expected to be one of transition, adjustment and development for McLaren and Honda, but the Japanese automaker's involvement in his hiring may not be all bad news for Alonso. Following the reveal of the new Acura NSX, Alonso tweeted "You still don't know, but one day we will be together..." followed by a series of heart-eyed smiley-face emoticons and accompanies by images of Honda's new supercar. The implication is that the two-time World Champion is expecting to get his talented hands on an NSX of his own, and we can certainly see how Honda would appreciate the imagery of Fernando driving around in its flagship. Even if it doesn't, though, we're sure McLaren would be glad to hook him up with a company car of its own – though Lewis Hamilton encountered some trouble securing (a very specific) one for himself. Even discounting the front-running F1 machinery he's been tasked with piloting on track to an impressive 32 career wins, Alonso has had some lustworthy company cars at his disposal over the years. At Renault, he had a Megane RS to drive, and during his last stint at McLaren, he had an SLR 722. But since signing with Ferrari, he's been given the keys to FCA models as varied as a Ferrari FF, a special 599 GTO, a Maserati GranCabrio, a Jeep Grand Cherokee SRT and an Abarth 695... and those are just the ones we know about.