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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

A fix and buyback program for Audi V6 diesels may be on the way

While Volkswagen reached a settlement to buy back 2.0-liter diesel inline-fours with emissions defeat devices, the roughly 80,000 cars with 3.0-liter diesel V6s built by Audi have yet to be addressed. But a new report from Bloomberg indicates that a solution is near. The publication says that sources familiar with the situation say the company has a fix ready for the majority of the cars, and that the EPA and California Air Resources Board are ready to approve it. According to Bloomberg, this fix would involve a software update and would work for about 60,000 of the Audi A8, Q5, Q7, Porsche Cayenne, and VW Touareg models with the engine. The rest of the vehicles won't be fixable without major modification, so those would have to be purchased back from the owners. Bloomberg does point out that approval from the EPA and CARB are only one piece of the puzzle. The publication said that this deal has yet to be approved by owners of the cars and the Federal Trade Commission, both of which may demand that VW offer a buyback to all owners, even those whose cars can be fixed. The good news for owners of VW products with this engine, is that they should have some closure pretty soon. And owners that still like their diesel V6 can take solace that they might actually be able to get them fixed, as opposed to owners of the 2.0-liter diesels. VW offered buybacks to owners of all 475,000 cars with the turbo four-cylinders, or a fix when it's available. However, there have been no signs of an approved fix. Related Video: News Source: Bloomberg via Automotive NewsImage Credit: Sebastian Blanco Government/Legal Green Audi Porsche Volkswagen Diesel Vehicles vw diesel scandal audi diesel

Honda, Mazda, Mitsubishi, Mercedes also under diesel emissions scrutiny

The controversy over Volkswagen's diesel emissions scandal isn't limited to the US. In Europe, where diesel engines are far more popular, the issue is shining a harsh light on the NEDC emissions test. As already known, the evaluation does a poor job of reflecting real-world production of NOx, and it appears a significant number of automakers are affected. The Guardian in the UK has been reporting on real-world test results from a company called Emissions Analytics. After the latest round of checks, vehicles from Mercedes-Benz, Honda, Mazda and Mitsubishi were found to generate far more NOx than they should. The newspaper also published similar results for Renault, Nissan, Hyundai, Fiat, Volvo, Jeep, Citroen, VW, and Audi. On average, the figures are about four times over the limit of producing the pollutant. Unlike VW and its defeat device, these automakers aren't actually breaking the rules. The vehicles perform up to the NEDC lab test for emissions, but those results simply aren't translated to the street. "The VW issue in the US was purely the trigger which threw light on a slightly different problem in the EU - widespread legal over-emissions," Nick Molden from Emissions Analytics said to The Guardian. A big fight to decide the future of this issue appears to be on the horizon. Automakers claim that they can't meet the next round of tightening emissions regulations and are asking for compromises. Although, spokespeople for Mercedes and Honda told The Guardian that the brands would be in favor of the stricter rules. Meanwhile, some European governments began backtracking their support of diesels well before this scandal came to light. The added scrutiny certain hasn't helped the future of the oil-burner. Related Video: