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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

McLaren F1 team sets deadline for engine decision amid Renault speculation

BUDAPEST - McLaren says the next five weeks will be the key to deciding which engine it will use next season, with speculation mounting that the former world champions could ditch Honda and switch to Renault. Chief operating officer Jonathan Neale told Reuters at the Hungarian Grand Prix that "everybody is talking to everybody," but time was running out. "We've got to land those decisions in the next four or five weeks," he said, speaking from a design perspective and because drivers like McLaren's Fernando Alonso were waiting to see what engines teams had before committing to new deals. "I think there is a solution out there for everybody and I hope it's one that will be able to retain Fernando in this team." McLaren scored their first double-points finish of the season in Budapest on Sunday with double world champion Alonso finishing sixth, a day after his 36th birthday, and Belgian Stoffel Vandoorne 10th. The nine points lifted McLaren off the bottom of the standings just before the August break and factory shutdown, a result that Neale compared to scoring a goal before halftime. Alonso's future is a key concern, with the Spaniard out of contract and saying McLaren needs to provide a competitive car to keep him. Honda's power unit has been beset with problems since the partnership started in 2015, the engine neither reliable nor competitive. Hungary, the slowest permanent circuit on the calendar, reduced those shortcomings, but the next two races in Belgium and Italy are two of the fastest, where engine horsepower is of critical importance. McLaren is Honda's sole team in Formula One. A proposed partnership with Sauber terminated last week with the Swiss team choosing to stay with Ferrari. A split from McLaren could force the Japanese manufacturer out of the sport, but Neale hinted at an alternative. "You'll have seen the media speculation that there's discussions with Toro Rosso," he said. Toro Rosso use Renault engines, but a switch to Honda — which could bring welcome funding to a team whose Red Bull parent has considered a sale in the past — would free the French units for McLaren. The Renault engine has won a race this season with Red Bull and could satisfy Alonso, who won both his titles with the French manufacturer. The other alternatives to Honda are Mercedes and Ferrari, but Neale recognized that putting a Ferrari engine in a McLaren, the Italian team's historic arch-rivals, was highly unlikely.

Honda's hot new Civic Type R finally hatches in production form [w/video] [UPDATE]

UPDATE: A previous version of this article incorrectly indicated that the vehicle in question is the most powerful hot hatch ever made. As some commenters pointed out, the Ford Focus RS500 was more powerful by some 40 horsepower. We've updated the text below accordingly. Takanobu Ito may be stepping down as president and CEO of Honda, but as far as performance machinery is concerned, he'll be leaving the company in good shape. Not only has he ushered Honda back into Formula One – reviving the legendary partnership with McLaren – but he's also brought back two performance icons: the NSX and the Civic Type R. The former is making its European debut here at the Geneva Motor Show after its premier in Detroit, but alongside it we're seeing for the first time the production version of the latter. Not that it's exactly our first look at the new hot hatch. We've seen it testing, seen a couple of concept versions and even drove an early prototype. But after that whole lengthy process, it's finally here. (Or there, we should say, because it won't be coming to America. At least not in its current form.) What we're looking at, according to the manufacturer, is not only the fastest and most powerful front-drive hot hatch it's ever made, but on the market altogether. It packs a 2.0-liter VTEC turbo four kicking out 306 horsepower and 295 pound-feet of torque – the most powerful production engine the company has ever offered – said to be enough to propel the new Civic Type R to 62 in 5.7 seconds and on to a top speed of 167 miles per hour. That's a whole lot of muscle to channel to the front wheels, but Honda's surely done its best to keep it all under control. It's got an old-school six-speed manual transmission, electric power steering, 19-inch wheels, Brembo brakes, adaptive dampers and a suspension designed to combat torque steer and tuned to enhance high-speed stability and support hard cornering. In addition to extensive testing at locations including the Nurburgring, Suzuka and the company's own Takasu test track, the new Civic Type R has also undergone considerable CFD and wind tunnel testing to tune the aerodynamics. The resulting appendages may be toned down slightly from the concepts, but still make quite a visual impact – to say nothing of generating much-needed downforce to keep this sucker glued to the road or track.