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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

Only VW, Volvo are doing enough to electrify in Europe, study says

Among major carmakers, Volkswagen and Volvo are doing enough to electrify their vehicle lineups in Europe, and the EU needs to set tougher CO2 emission limits if it wants to meet Green Deal targets, according to a climate group's study. Sales of battery electric vehicles and plug-in hybrids almost tripled last year, boosted by tighter emission standards and government subsidies. This summer, the European Union is expected to announce more ambitious CO2 targets; by 2030, the average CO2 emissions of new cars should be 50% below 2021 levels, versus the existing target of 37.5%. Volkswagen aims to have 55% group-wide BEV sales in Europe by 2030, while Swedish carmaker Volvo, owned by China's Geely says its lineup will be fully electric by then. VW ID4 front three quarter dark View 19 Photos Based on IHS Markit car production forecasts, according to the study from European campaign group Transport and Environment (T&E), Volkswagen and Volvo have "aggressive and credible strategies" to shift from fossil-fuel cars to electric vehicles. Others like Ford Motor Co have set ambitious targets, "but lack a robust plan to get there," T&E said. Ford plans an all-electric lineup in Europe by 2030. T&E said BMW, Jaguar Land Rover (JLR), Daimler AG and Toyota rank the worst as they have low BEV sales, have "no ambitious phase-out targets, no clear industrial strategy, and an over-reliance in the case of BMW, Daimler and Toyota on hybrids." JLR, owned by India's Tata Motors, says its luxury Jaguar brand will be all-electric by 2025, but has been less specific about electrification of its higher-volume Land Rover brand. BMW and Daimler have been reluctant to set hard deadlines for phasing out fossil-fuel cars. T&E said even if carmakers meet their targets, in 2030 BEV sales could be 10 percentage points below those needed to meet the EU's Green Deal — which targets net zero emissions by 2050. Rather than a 50% reduction in CO2 emissions by 2030, based on carmakers' existing production plans, the EU could set more ambitious targets, T&E said - an up to 35% reduction in CO2 emissions from new cars by 2025, around 50% by 2027 and up to 70% in 2030. "Targets need to be gradually tightened so that carmakers not only commit to phasing out fossil fuels, but develop a strategy that gets them there on time," Julia Poliscanova, T&E senior director for vehicles and e-mobility, said in a statement.

Chief designer Walter de Silva out at Volkswagen

After decades of penning beautiful machines, Volkswagen Group design boss Walter de Silva will retire at the end of November but will still hold an advisory role. He has led the styling for the automotive giant's brands since 2007. The company's statement didn't announce a successor for him. De Silva began his design career at Fiat in 1972 and led styling at Alfa Romeo from 1986 to 1998. He first joined VW Group with Seat but made a big splash at Audi in 2002. His work there included the sixth-generation A6, A5, and the fantastic R8. Later, he created a great take on the classic Leica M9 camera, too. VW praised de Silva's creation of a design culture that spanned its division but still allowed for creativity within each one. "Walter de Silva epitomizes creativity and the Italian sense of beauty and style on the one hand and thoroughness, a systematic approach and discipline on the other," CEO Matthias Muller said in the announcement. De Silva's retirement could bring a major change in the way VW Group organizes its studios, according to Automotive News. The automaker reportedly wants to cut its annual styling budget and might not seek a replacement for him. Walter Maria de Silva takes retirement Head of Group Design established common design culture across all brands while retaining creative autonomy of each individual brand Walter Maria de Silva Walter Maria de Silva Walter Maria de Silva (64), Head of Group Design, is retiring with effect from the end of November. De Silva assumed design responsibility for all passenger car brands within the Volkswagen Group in February 2007. Walter de Silva will continue his links with the Group in an advisory capacity. Walter Maria de Silva was born in Lecco (Italy) on February 27, 1951 and joined the Volkswagen Group 17 years ago when he became Head of the SEAT Design Centre in 1998. He was put in charge of the design of the Audi brand group, including the brands Audi, Lamborghini and SEAT, in 2002. His new design language with Audi was epitomised by the 6th generation of the Audi A6 and Audi A5 Coupe. He was appointed Head of Group Design at Volkswagen Aktiengesellschaft in 2007. Walter de Silva saw the main focus of his work as design chief in establishing and nurturing a common design culture across all brands, which nevertheless allows each brand to retain a high degree of creative autonomy.