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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

Toyota, Mazda get an Alabama welcome for $1.6 billion plant

MONTGOMERY, Ala. — Toyota and Mazda confirmed Wednesday they will build a $1.6 billion joint venture assembly plant in Alabama that will employ up to 4,000 workers, a boost for President Donald Trump who wants automakers to expand U.S. production. Toyota President Akio Toyoda and Mazda President and Chief Executive Officer Masamichi Kogai joined Alabama Gov. Kay Ivey in Montgomery at an event to confirm the decision. "Welcome to sweet home Alabama," Ivey said to the two executives, after saying that the anticipated 4,000 workers at the plant to be built in Huntsville would earn an average of $50,000 a year. The plant will produce 300,000 vehicles a year and should open on a 2,500-acre former cotton field in 2021, about 14 miles from Toyota's engine plant in Huntsville. Toyota plans to build Corolla cars at the plant, while Mazda will build crossover SUVs. "Together, I am confident we will create yet another 'Built in America' success story," Toyoda said. Alabama will provide tax incentives. Officials said the state tax incentives were worth $370 million, but they did not disclose how much the local incentives were worth. Huntsville Mayor Tommy Battle said the plant will "provide jobs for decades to come for Huntsville and Alabama. It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation." Among U.S. states, Alabama is already the fifth largest producer of cars and light trucks. The state has more than 150 major auto suppliers and 57,000 automotive manufacturing jobs. Two decades ago, Alabama spent an estimated $250 million to woo Daimler AG's Mercedes-Benz to put an auto plant in Tuscaloosa, sparking the birth of auto production in the state. In September, Daimler said it would invest $1 billion to expand its Alabama Mercedes-Benz plant to start building electric sport-utility vehicles there from about 2020. Alabama is also home to assembly plants operated by Honda and Hyundai. A Kia assembly plant operates near the Alabama border in Georgia. Mazda and Toyota said they still need approvals and authorization by antitrust agencies for the new joint venture. They announced a capital alliance in August and plans to jointly develop technology for electric vehicles. Trump tweeted in March he wanted "new plants to be built here for cars sold here." Many automakers have announced expansions of facilities or new jobs but no other new U.S. auto plants have been announced. U.S.

Hiss off! Venomous snake takes refuge in Australian man’s engine bay

A man who went out for a walk in suburban Sydney got quite a surprise when he returned to his red Mazda. Left on his windshield was a hand-written note warning him that a venomous red-bellied black snake had taken up residence in his car. "Hi," the note read, "this afternoon a red Belly slithered up into your front left tyre. Please be careful." The snake is a native of wet areas of eastern Australia that can grow up to 2.5 meters (about 8 feet), making it one of Australia's largest venomous snakes. They're considered dangerous, but shy, unlikely to bite unless severely agitated. When Michael Garbutt popped the hood, he found the snake coiled up inside in the corner. "To say I was shocked is an understatement," he told The Sydney Morning Herald. "On reflection I don't think I would have put my hand out to pop the bonnet if I had known it was there." So he took to Google to look for a local snake wrangler and found Andrew Melrose, of Shire Snake Catchers. By the time he arrived, the snake had moved down into the engine. Then it moved behind the wheel guard, and then under the engine to the front bumper, then back to the right front wheel. Melrose said he coaxed it out by gently touching its body. "I've done it my whole life," he said. "It looks simple but if you haven't done it before you can get killed real quick." In the end, Melrose ended up grabbing the snake from the ground outside of the car and dropping it in a bag. The whole de-snaking process took about an hour. Melrose said the snake is common on the swampy peninsula area where it was found, since it finds plenty of frogs, eels and other creatures to eat. He says it's common to find them in cars. "If they get startled they look for the first place that is safe," he said. "The place I found it was very bare. There was no place for the snake to escape. People would have startled it and the only place for it to hide was the car. The driver could have driven off unaware and parked and the snake would have left the car when it felt safe." So let this be a lesson for you, Autoblog readers: familiarize yourself with your local venomous snakes. And keep the number of your local snake wrangler handy at all times. Or just don't move to Australia.Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Image Credit: Unknown Auto News Weird Car News Mazda snake