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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

Lamborghini could be sold or spun off from the Volkswagen Group

Volkswagen is reportedly considering a sale or stock listing for its high-end Lamborghini brand. The German automaker is looking to fold the Italian supercar brand into a separate legal entity, reports Bloomberg, which cites "people familiar with the matter" who don't want to be identified "because the deliberations are confidential and no decisions have been made." Any of this sound familiar? The goal of spinning off Lamborghini would be to stockpile more cash and other resources for VW's massive planned push into electric vehicles. Back in March, reports circulated that Volkswagen's "Vision 2030" corporate plan might include plans to focus on the brand's core brands — VW, Audi and Porsche. That means the futures of fringe players like Lamborghini, Bentley, Bugatti, motorcycle brand Ducati and design firm Italdesign (and note this isn't a comprehensive list of brand's under the expansive VW Group umbrella) are up in the air. VW, according to the report, is targeting a market value of $220 billion, which is a big jump from the brand's current $89 billion valuation. Bloomberg pegged Lamborghini's valuation at around $11 billion back in August, buoyed by sales and profits generated by the introduction of the Urus sport utility vehicle. On the flip side, Lamborghini is currently grappling with how best to update its supercar lineup in the face of ever-increasing emissions regulations.

VW reveals updated 2016 Jetta GLI [UPDATE]

UPDATE: Volkswagen has updated its press release regarding the EA888 four-cylinder engine. Originally, it was described as the same engine as the GTI. This is not strictly the case, though. While both the GTI and GLI use the EA888 engine, the GLI's engine does not get variable valve lift. Our story has been edited to reflect this. The Volkswagen GTI's slightly more mature and conservative fraternal twin, the Jetta GLI, is getting updated for 2016 in a big way. Chief among the changes is the GLI's new engine. It's an EA888 2.0-liter, turbocharged four-cylinder, like the engine we've so thoroughly enjoyed in Autoblog's long-term GTI, although it does without variable valve lift, according to Volkswagen. It's still rated at 210 horsepower, though. Volkswagen also made some minor visual tweaks, including 18-inch "Mallory" wheels, a new front fascia, and a rear bumper that includes a diffuser and two chromed exhaust tips. There's also a new standard safety feature being offered for 2016 in the form of the Automatic Post-Collision Braking system. This is not, as we initially thought, a collision mitigation braking system, though. Basically, it only kicks in after the airbag sensors detect a crash, at which point APCB clamps down on the brakes in a bid to minimize the severity of the accident. Check out VW's full press release on the 2016 Jetta GLI, and the head up top for a look at the visual changes for this year. VOLKSWAGEN REVEALS THE 2016 JETTA GLI Jun 10, 2015 The performance version of Volkswagen's best-selling car offers new features and a sporty new look for the 2016 model year Herndon, VA — Today, Volkswagen of America unveiled the 2016 Jetta GLI, the sedan equivalent of the Golf GTI. Equipped with a specially tuned sport suspension and the same 210-horsepower, 2.0-literTSI® turbocharged and direct-injection EA888 four-cylinder engine as the Golf GTI, the GLI offers a compelling blend of value, performance and practicality. For 2016, the GLI gets a bold new look highlighted by an aggressive front fascia that incorporates a honeycomb grille and foglights, along with a new rear bumper design that has a diffuser and a pair of chrome-tipped exhausts. All 2016 Jetta GLI models have 18-inch Mallory design aluminum-alloy wheels, shod with standard all-season tires or optional summer performance tires. Inside, 2016 GLI models benefit from the new MIB 2 infotainment system that incorporates the full suite of USB and Car-Net connectivity.