1970 Karman Ghia Convertible on 2040-cars

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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

Hyundai plans Level 4 autonomy by 2021 in a fuel-cell car

SAN FRANCISCO — Silicon Valley startup Aurora announced on Thursday partnerships with Volkswagen AG and Hyundai to develop a self-driving system within their vehicles, the latest tie-up between global automakers and Silicon Valley tech companies. Aurora was founded in 2016 by robotics expert Drew Bagnell, Chris Urmson, who came from Alphabet Inc's Google, and Sterling Anderson, who formerly worked at Tesla. For Hyundai, Aurora's technology will be incorporated into custom-developed models and tested in markets including China. Hyundai said the first model to be used in testing will be its latest generation fuel-cell vehicle, debuting at the CES technology conference in Las Vegas next week. The model name of the car, shown above, will be announced then. Under the alliance, Hyundai plans to commercialize level 4 autonomous vehicles — which can operate without human input or even human oversight under select conditions — in unidentified "pilot smart cities" by 2021. This is the first announcement on a self-driving technology partnership by the South Korean carmaker, which has traditionally shunned tie-ups in favor of developing technology in-house. The strategy has raised investor concerns that it may be left behind in the race for self-driving and electric cars. A company spokeswoman said Hyundai has "various collaborations" under way in self-driving technology and would continue to pursue cooperation. In a statement, Volkswagen said Aurora's self-driving technology can be integrated over time across the automaker's brands and in different product categories, whether self-driving pods, shuttles, delivery vans or self-driving trucks. Aurora and Volkswagen said they had been working together over the past six months to integrate Aurora's sensors, hardware and software into the German carmakers' electric vehicles to develop self-driving ride services in cities. The non-exclusive partnerships mark the first deals for the young Silicon Valley company and show how some carmakers have chosen to partner with technology companies with more experience in artificial intelligence, deep learning and robotics in order to save time and money bringing self-driving cars to market. Within the self-driving car space, Waymo — formerly Google's autonomous program headed by Urmson — is offering something similar. The tech company has been working with Fiat Chrysler since 2016 to outfit its Chrysler Pacifica minivans with autonomous technology.

Volkswagen Golf Wagon caught completely uncovered

Without a lot of information to go with them, our camera-toting spies have captured some new images of a Volkswagen Golf wagon variant that is almost completely undisguised. In fact, the one piece of camouflage on the tidy wagon would probably have gone unnoticed to most casual viewers. Look closely at the rear three-quarter view of the car and you'll notice that the apparent taillight clusters are actually fakes - the outline of the real units is faintly visible behind the blue bodywork and the sticker-like fake taillights.
It's a good guess then, that this Golf wagon (called a Golf Kombi by our spy photographer) is a prototype that's pretty far along in the development cycle for Volkswagen. We can't be sure what impact this will have on the company's small wagon offering here in the US, but we'd be pretty surprised if something very like this didn't end up as the next Jetta SportWagen. We might well have more information on that front, after we visit Geneva next week.