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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

Mazda CX-3 to be diesel-only in Japanese home market

Diesel power. It's not just for Europeans anymore. In fact, when Mazda introduces its new CX-3 compact crossover to its home market of Japan, the model will be exclusively diesel-powered, Reuters says, citing remarks made by Mazda CEO Masamichi Kogai. Consistent with its recent push for better fuel economy, Mazda is embracing diesel power as a way to boost fuel-economy for cars that may be larger than the compact variety. Mazda, which plans to make about 150,000 gas- and diesel-powered CX-3s for global consumption per year, is pricing the diesel CX-3 at about $20,000 in Japan. Diesel sales accounted for less than three percent of new-vehicle sales in Japan last year, so there's a risk to Mazda's strategy. But the automaker, which is the fifth-largest in Japan, says performance and noise (and smoke) issues largely associated with diesel powertrains in the past have largely been eliminated. In all, Mazda expects worldwide sales for the year ending March 31 to rise almost five percent from a year earlier to about 1.4 million units. Mazda showed off an early version of the CX-3 at the Los Angeles Auto Show last November, though North American versions of the model will indeed be gas-powered. Related Video: Featured Gallery 2016 Mazda CX-3: LA 2014 View 17 Photos News Source: Reuters Green Mazda Diesel Vehicles mazda cx-3

Mazda planning not one but two new crossovers for U.S.

Mazda has already announced plans to unveil a brand new crossover at the Geneva Motor Show, but it turns out there's another one in the pipeline set to satiate the appetites of a crossover-mad U.S. market. Speaking at the Chicago Auto Show, Mazda North America CEO Masahiro Moro told reporters the brand has another model planned for production at the $1.6 billion plant under construction with joint-venture partner Toyota in Huntsville, Ala. It'll be "a new crossover SUV which is exclusively designed for the North American market," Automotive News quoted Moro as saying. While it'll be a different product from the one debuting next month in Geneva, the two vehicles will share some architecture. The company is reportedly still finalizing the concept for it. Currently, Mazda sells three crossovers in the U.S.: the subcompact CX-3, the compact CX-5 and the larger CX-9. Together, the three vehicles, which constitute half of the tiny automaker's vehicle lineup, posted sales of 195,778 for 2018, up 15.8 percent from 2017. They accounted for nearly two-thirds of the brand's total vehicle sales of 300,325. Production is expected to start at the new Alabama plant in mid-2021, Moro said, and add capacity for 150,000 units of crossovers. The plant is expected to employ up to 4,000 workers with a total capacity of 300,000 vehicles a year. Toyota plans to build the Corolla there alongside Mazda's crossovers. Mazda last week released the teaser pic shown above of its forthcoming new crossover headed for Geneva. It could be the next and slightly larger version of the CX-3, which will use the Skyactiv Vehicle Architecture that also supports the new Mazda3. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.