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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 Skyactiv-X Review | The revolution begins with a squeeze-bang

The matte black Skyactiv-X prototype looks like a rough Mazda3, perhaps reconstructed after a bad wreck by an over-enthusiastic owner of a spot welder and lots of gaffers' tape. Ribbed ducts poke out of the dash sending two breaths of conditioned air to no one in particular. Even its revolutionary engine, the thing we're here to experience, is entombed in a massive, nondescript cover to mask its unseemly noises. It's a wild, strange way to meet a very unconventional vehicle that promises diesel-like fuel economy, a wide torque band, and an exotic method for burning less gas than ever before. It takes a few hours for Mazda's engineers to explain the fundamental principles of operation. For more detail, read our Skyactiv-X Spark Controlled Compression Ignition explainer, but here's a very brief overview. Skyactiv-X marries some traditional gasoline engine characteristics with a novel form of compression ignition called SPCCI. The key for Skyactiv-X is to use very high compression in the cylinder and an extremely lean fuel-air mixture. Squeezed right to the cusp of getting hot enough to blow up all on its own (which is very hard to predict), a squirt of extra gas and a spark interject to cross that compression-ignition threshold in a controlled and predictable manner. See the animation below: That takes a few essential components to get just right. One is a massive amount of computer processing power and some pressure sensors in the individual cylinders, because the ambient conditions change how and when these things happen. Skyactiv-X uses a clutched supercharger to pump in additional air when needed to nail the mixture precisely, and high-pressure injectors to get the low ratios of fuel to disperse properly in the chamber. And since it operates like a conventional gasoline engine sometimes, it uses valve timing to lower the very high compression ratio so it doesn't reach combustion ignition in that mode. In practice, the Skyactiv-X runs in compression ignition mode most of the time. In practical terms, that means it drives like a torquey gasoline Skyactiv engine. The torque curve is broad and flat — diesel-like in that respect. That also means it can get away with using a six-speed transmission and a lower final drive for better response. There's enough grunt and economy together that Mazda can let the engine spin faster — at 60 mph, it's running at roughly 1,000 more RPM than a similar gas engine, with greater efficiency.

Mazda's first-quarter profit slumps on weak sales in U.S. and China

TOKYO — Mazda reported a 79% drop in quarterly operating profit, falling significantly short of estimates, as it continues to struggle with declining U.S. and Chinese sales, while a strengthening yen also cut into its bottom line. Operating profit at JapanÂ’s No.5 automaker was 7.0 billion yen ($64 million) in the first quarter ended June, versus around 33 billion yen a year ago and less than half of an average forecast for 18.5 billion yen from analysts polled by Refinitiv. Mazda, however, reiterated its forecast for a 33% rise in operating profit to 110 billion yen in the year ending March. ThursdayÂ’s profit announcement marks MazdaÂ’s poorest first-quarter operating performance since the June 2012 quarter. The automaker has been struggling with falling demand for its cars over the past year or so, while it is also recovering from flood-related damage to its factories in Japan that led to a quarterly loss in the July quarter of 2018. The Nikkei business daily on Wednesday had reported that operating profit at the company would fall around 70% for the quarter due to lower sales in the United States. Mazda posted global sales of 353,000 units for the quarter, down 12% from a year ago. Its sales in the United States, its biggest market, fell 15% to 68,000 units, while in China, Mazda sold 54,000 vehicles, down 21% on the year. A trade war between the top two economies and slowing growth in China, the worldÂ’s biggest auto market, have prompted a broad-based sales downturn in the global auto sector. Automakers are grappling with easing demand for cars just as they must invest heavily in new technologies including electric cars, autonomous driving technologies and ride-sharing services to survive a major industry shift away from car ownership. Many of MazdaÂ’s rivals at home and abroad have been reporting disappointing quarterly results, with Nissan and Ford also announcing job cuts and possible plant closures earlier this month. The United States is a key source of revenue for Mazda, but it imports all its vehicles sold there, exposing it to a threatened hike in U.S. tariffs on imported cars from Japan. To limit its vulnerability to possible tariffs and currency fluctuations, Mazda is investing in a new plant in the U.S. state of Alabama, a joint project with Toyota.