MEXICO

Buick Envision Debuts With No Fanfare

June 8, 2016 by admin 2 Comments

The made-in-China Envision is now on sale in North America.

The Buick Envision has arrived, the third crossover in this tri-shield brand’s portfolio. Only you wouldn’t know that without closely examining US auto sales data for May 2016.

Tucked within that information are the 89 Envisions sold in the US last month. As promised, Buick said the Envision would go on sale in the second quarter of 2016. However, instead of the customary fanfare accompanied by TV ads and a media push, the Envision has quietly gone on sale.

Political Posturing and a New Crossover

Why the quiet debut? Buick told Automotive News the Envisions now on sale are high-trim level 2016s. In a few months, the full range of Envisions will be made available and sold as 2017s. Its an unusual approach, but it may signal an internal decision to avoid political theater.

Indeed, the Buick Envision is made in China and it might receive unwanted attention from the presumptive Republican presidential nominee, Donald Trump. Trump has harshly criticized US manufacturers for shipping jobs overseas or importing products that could just as easily be built by Americans.

Just last week Trump criticized the PGA Tour for its decision to move a tournament from the US to Mexico. The WGC-Cadillac Championship has been played at the Trump National Doral near Miami and will shift to Mexico beginning in 2017. Cadillac’s sponsorship was ending and will be replaced by Grupo Salinas, an assemblage of media companies.

NAFTA and Imports

Notably, Cadillac and Buick are GM brands and just this week Trump blasted the automaker for its investment in Mexico. GM now joins the Ford Motor Company, Carrier and Nabisco, as companies the presidential candidate has attacked.

While campaigning, Trump has suggested a 35 percent tariff on vehicles imported from Mexico. Of course, that recommendation ignores NAFTA (North American Free Trade Agreement), a trilateral agreement the US made with Canada and Mexico to do away with numerous tariffs.

(See Also — Swift Sportback: 2018 Buick Regal GS)

2016/2017 Buick Envision

Political posturing aside, the Chinese-made Buick Envision fills an important hole in the Buick product line. Prior to its arrival, Buick offered the subcompact Encore and midsize Enclave crossovers. The Envision provides a natural step in the product line for Buick customers.

Visit the Buick.com website today and you’ll find no information about the Envision on its home page. Click the “All Vehicles” tab and a model list is shown. Cast your eyes on the “SUVs” category and you’ll spot the 2016 Envision tucked neatly between the 2016 Encore and the 2016 Enclave.

You’ll also spot a sky-high price for the Envision, starting at $42,070 or $3,005 higher than the Enclave. Click the “explore” tab, then “view specs” and you’ll find two trim levels featured. Both are fully-loaded all-wheel drive versions, the only models marketed in the 2016 model year.

Head back to the “all vehicles” tab and you’ll spot the 2017 Envision and a note explaining its fall 2016 availability. Click “explore” and a list of five trim levels will appear. The base price for the standard Envision is $34,990 with Preferred ($36,795), Essence ($38,645), Premium ($43,245), and Premium II ($45,885) models offered.

Front-wheel drive and a 2.5-liter, four-cylinder engine are standard. All-wheel drive or active twin-clutch all-wheel drive are available. A turbocharged 2.0-liter, four-cylinder engine is offered with the two top trims only.

The Buick Product Line

Buick’s model line is expanding and they’re using cars built in Michigan, Ontario, Kanas, and China to draw customers to the tri-shield brand. It is doubtful whether most customers care where their cars are built.

And as for American jobs, dealer and service level positions are keeping people employed and tax coffers are replenished no matter where the new car was manufactured.

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Ford Investment Gives Donald Trump Something to Crow About…or Not

April 28, 2016 by admin 1 Comment

Ford gears up to produce new 10-speed automatic transmissions.

Earlier this week, the Ford Motor Company announced a $1.6 billion investment in its Livonia Transmission (Michigan) and Ohio Assembly plants, representing just one part of a $9 billion expenditure in US facilities over the next four years. Ford’s immediate investment will retain or add jobs at the two plants with 8,500 jobs created or retained overall.

Trump on Ford: Absolute Disgrace

The news follows Ford’s announcement earlier this month when the automaker stated it would lay out $1.6 billion to build small cars in Mexico. That decision was lambasted by GOP presidential contender and business mogul, Donald Trump, who said Ford’s decision was an “absolute disgrace.”

Trump has been shedding light on American job loss since he announced his candidacy, a topic that attracts voter attention. And rightly so. Unfortunately, he doesn’t always provide a context in his criticism and panders to his constituency. Other candidates, including Hillary Clinton, do the same. But Trump is the only one who has had Ford in his crosshairs.

The candidate also claimed he forced Ford’s hand last fall by saying he made Ford return some jobs to Ohio from Mexico. Trouble is, those jobs at its Avon Lake, Ohio, plant were scheduled to shift all the way back in 2011. Production of F-650/F-750 medium-duty commercial trucks began last August, but Ford says it hadn’t spoken with Mr. Trump and that its decision was announced nearly four years earlier.

Earmarking Investment Funds

As for the most recent $1.6 billion investment, Ford says $1.4 billion is earmarked for its Livonia Transmission Plant and the remaining $200 million will go to the Ohio Assembly Plant. These funds represent part of a $9 billion guarantee Ford made in the 2015 UAW-Ford collective bargaining contract to continue investing in its U.S. plants.

The current four-year allocation follows a five-year, $12 billion investment in US plants, a move that created 28,000 US jobs. As for the future of American manufacturing, Joe Hinrichs, Ford president, The Americas said, “We are committed to manufacturing in the United States, as we have been for more than 100 years.”

GM-Ford Collaboration

Ford’s Michigan investment follows a special collaborative agreement it made a few years back with its arch-rival, the General Motors Company. In 2013, Ford and GM agreed to jointly develop an all-new generation of 9- and 10-speed automatic transmissions. Designed to be built in both front- and rear-wheel drive variants, the arrangement provides hardware commonality and enables the two automakers to scale costs.

And this wasn’t the first time to two companies have developed transmissions. In 2002, GM and Ford came together to build 6-speed automatic transmissions, used in numerous products and to this day.

The first Ford product to get the 10-speed automatic will be the F-150 Raptor. The Livonia plant currently builds a 6-speed transmission for several Ford products and will begin production of the new transmission in June. The Chevrolet Camaro ZL-1 will, by the way, become the first GM recipient of the new gearbox.

Following the insourcing of jobs from Mexico last year, the Ohio Assembly Plant began building F-350, F-450 and F-550 Super Duty chassis cab configurations earlier this year. The plant is also tasked with producing Ford E-Series cutaway vans and stripped chassis.

Political Theater Extraordinaire

As for Trump, he may find yet another reason to poke Ford as well as GM and Fiat Chrysler as the campaign attacks strengthen. No, I’m not playing favorites here (after all, I am a Libertarian). Instead, I’m doing my part to present some balance as well as sensibility into the often heated and exaggerated political process.

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Shapely Infiniti Q30 Makes its Global Debut

September 16, 2015 by admin 2 Comments

Infiniti introduces the first model from its alliance with Mercedes-Benz.

Infiniti Q30

The Frankfurt Motor Show is now in progress and the Infiniti Q30 is one of several notable models making its global debut. The newest model from Nissan’s luxury brand has a crossover look, but it is very much a compact model with a tall presence.

Indeed, the Infiniti Q30 has a distinctive crossover look, but this front-wheel drive model with optional all-wheel drive is strictly for the road. The new model is based on the Mercedes-Benz A-Class platform, the first model forged from an alliance between Infiniti and Mercedes.

The made in Mexico model will become the gateway car for the Infiniti brand, replacing the soon to retire Q40, itself based on the previous generation Infiniti G37. It will be joined by a second model, the Infiniti QX30, a true crossover SUV.

Added Roland Krueger, President of Infiniti, “Q30 is integral to Infiniti’s commitment to offering a broader range of premium products in new segments, and is part of an intense product launch period that will see us further enhance our offer to an increasing number of customers.”

Infiniti Q30

At first glance, the new Infiniti advances the brand’s styling cues. Its double-arch grille with 3D mesh dovetails with the design found in the Infiniti Q50, the most recently introduced Infiniti product. The headlamps, however, present a more flowing appearance, coinciding with the dramatic lines advanced by this diminutive model.

Expressive lines, notable indentations and pronounced scallops dominate the Q30’s visage, with deep embrasures flanking the lower grille opening. Muscular shoulders, a sweeping hood, a canted windshield and dramatic upper and lower profile character lines are also evident. This model is outfitted with standard 18-inch or available 19-inch alloy wheels, what contribute to the crossover-like demeanor.

A sporty rear bumper is met by a pair of rectangular exhaust finishers. A rear spoiler and distinctive wraparound tail lamps along with body sculpting complete the look.

Infiniti Q30

Inside, the Infiniti Q30 is flush with premium materials — black, black and brown, and white upholstery choices are offered. The latter is composed of leather and offers red accents for a high-contrast expression.

Infiniti makes use of high quality materials throughout the cabin, including Dinamica, what it describes as an “Italian suede-like material.” Dinamica can be found covering the inside pillars and the roof line.

The company’s designers paid special attention to the front seats, by providing a sport seat design with integrated headrests. The driver is treated to 8-way adjustment along with lumbar support. The flat-bottomed steering wheel is complemented by aluminum pedals and foot rests, peculiar to sporty models.

Infiniti Q30

The Infiniti Q30 displayed at the Frankfurt Motor Show offers a variety of powertrain options, including some that likely won’t be included with the US-spec model. The base gasoline engine displaces at 1.6 liters, making standard 120 horsepower or advanced 154 horsepower.

Further, two diesel choices will power the Q30, including a 1.5-liter diesel making 107 horsepower and a 2.2-liter diesel making 168 horsepower. A fourth engine, the only one that will be made available in the US market, is a 208-horsepower, 2.0-liter turbocharged four-cylinder motor. Transmission choices include a 6-speed manual and a 7-speed dual clutch automatic transmission.

Choose the Infiniti Q30 sport and this model’s stance is lowered by 0.6 inches to provide improve handling. Infiniti says that all models are tuned to handle “inconsistent road surfaces found in urban environments” with a bias toward mitigating vibration and harshness picked up from the road.

Company engineers claim that the steering system’s arrangement has been designed to enhance overall ride and handling feel through its intuitive speed-sensitive system, enabling drivers to “hold the line” through precise cornering. Front McPherson struts and a rear multi-link suspension system are ported from the Mercedes-Benz A-Class, but the strut tuning configuration is all Infiniti.

The Q30 goes on sale in select markets later this year. Its US arrival is expected some time in 2016.

See Also — On the Road With the Infiniti Q50S

Photos courtesy of Infiniti.

Renault-Nissan, Daimler Connect in Mexico

July 30, 2015 by admin Leave a Comment

You can’t buy a new Renault in the United States, but Nissan, Infiniti, Mercedes-Benz and Smart brand models are available.

Nissan (Nissan and Infiniti) and Daimler (Mercedes-Benz and Smart) each have a strong presence in North America on their own. Nevertheless, the two competitors are moving forward with an alliance that will produce new models for the Infiniti and Mercedes-Benz marques by means of a manufacturing plant currently under construction in Aguascalientes, Mexico.

Leaders of the COMPAS consortium are overseeing the Mexican alliance.

COMPAS: In the Right Direction

In 2010, Daimler and Renault-Nissan forged an alliance —COMPAS (Cooperation Manufacturing Plant Aguascalientes) — in an effort to build all-new, next generation compact models for the Mercedes-Benz and Infiniti brands. This week, the 50:50 joint venture was officially launched, with Daimler and Nissan each contributing $500 million to build a $1 billion manufacturing plant. That plant will be constructed alongside an existing Nissan facility in Aguascalientes.

The new manufactory is expected to come on line in 2017 and employ as many as 3,600 people directly by 2020 with room to grow as needed. The first Infiniti-based model will roll out in 2017 followed by the first Mercedes-Benz model in 2018.

New, Entry-Level Models From Mexico

Neither manufacturer has specified what models will be produced, but an Infiniti Q20 or Q30 model is reportedly in the offing. Mercedes-Benz may utilize the facility to begin producing its next generation CLA-Class model line.

COMPAS is overseen by a six-member board composed of three members from each manufacturer.

Armando Avila, Manufacturing VP, Nissan Mexico; Carlos Servin, Finance VP, Nissan North America; and Takehiro Terai, Total Customer Satisfaction VP, Nissan North America, are representing Nissan’s interests. Daimler is represented by Michael Göbel, Head of Production Compact Cars, Mercedes-Benz Cars; Axel Harries, Head of Quality Management, Mercedes-Benz Cars; and Christian Schulz, Head of Controlling, Mercedes-Benz Cars Operations.

“COMPAS is an outstanding example of the global reach of the Renault-Nissan Alliance and Daimler cooperation. Together we are combining the manufacturing expertise of Nissan and Daimler in one production plant in Mexico for the production of next-generation premium compact cars,” said COMPAS CEO Kurosawa. “Aguascalientes was selected as the location for this new plant thanks to the state’s well-established supplier base and Nissan’s track record in highly efficient manufacturing in Mexico for more than three decades,” he added.

Although the two manufacturers will build new models based on the same platform, each brand will inscribe their unique countenance on the vehicles sporting their names. The bones may be similar, but everything else about these models will be different.

Mexico is not the only facility that will build the new models. The companies will collaborate elsewhere, harnessing plants in Europe and China as well.

An Alliance of Convenience

The Renault-Nissan and Daimler partnership falls short of a full-blown alliance whereby each manufacturer takes a share in the other. Nevertheless, it demonstrates that automotive manufacturers can forge confederations to accomplish specific tasks. With both sides contributing to the alliance, development and production costs are shared, leading to greater economies of scale.

Nissan and Daimler Sales

US sales for Nissan are up 4.2 percent through June and are up by 8.3 percent for Infiniti. Mercedes-Benz sales are up 9.4 percent year to date, but Smart sales are down 22 percent. However, the 2016 Smart ForTwo is all new, arrives this fall, and should help bolster Daimler’s niche A-segment brand.

Sales for the entire US market are up 4.4 percent through June 2015 and are on pace to top 17 million units. Softening demand for cars comes as consumers snap up utility vehicles and pickup trucks in greater numbers.

Not US Bound: Ram 700 Pickup Truck

November 3, 2014 by admin 2 Comments

Diminutive truck enhances Ram’s Mexican product line.

Ram 700 Pickup Truck — This little utility truck is new to the Mexican market.

Considering that car manufacturers may push for product unity across different markets, the truth is that these very same companies know that certain products will only sell in specific places. Full-size pickup truck sales are largely confined to the United States and Canada, while tiny, car-based “utes” may see success elsewhere.

2015 Ram 700

One product that we won’t see in the United States is the Ram 700, a compact pickup truck based on a Fiat design. The truck was recently introduced to the Mexican market, where it will augment Ram’s other truck lines including the familiar 1500 series.

The truck is built in standard and crew cab configurations with a base price of approximately $13,656 for the two-door and $18,034 for the four-door. Those prices are based on the most recent Mexican peso to US dollar conversion and do not include the typical related delivery fees and taxes.

Ram 700 Specifications

The 2015 Ram 700 is powered by a 1.6-liter four cylinder engine making 115 horsepower at 5,500 rpm and 119 foot-pounds of torque at 4,500 rpm. Ram pairs this engine with a five-speed manual transmission. The truck weighs 2,577 pounds and measures 107 or 108.3 inches between the wheels, the longer wheelbase for the quad cab.

The Ram 700 is 174.8 or 176 inches long by up to 68.5 inches wide and up to 64.9 inches tall. Its payload capacity is approximately 1,550 pounds. No, this vehicle is not suitable for towing.

Fiat Chrysler builds the Ram 700 in Brazil and sends it north. In Brazil, it is sold as the Fiat Strada and also competes with the Volkswagen Saverio and Chevrolet Tornado reports Allpar, an enthusiast site for Chrysler and Fiat products. Strada once represented a small Fiat car, but the name has been applied to the ute since 1996.

Cabin and Safety Information

What we know about the Ram 700 is limited, but in translating the spec and general information pages we know a few things about this model. The instrument panel features an overlapping four-gauge analog display with speedometer, tachometer, fuel and oil gauges. It also includes a driver information center featuring the odometer, time and outside temperature. Its audio system provides Bluetooth connectivity and includes an MP3 player and an auxiliary input port.

The 700’s safety features include two front airbags, a collapsible steering column, reinforced doors, crumple zones and three-point safety belts. Exterior color choices include Alpine Red, Gloss White, Silver and Black. The interior has cloth seating surfaces with bucket seats up front and a bench seat to the rear in the crew cab.

Model Considerations

The 700 looks nothing like other Ram models and is absent the crosshair grille that is a brand staple. Clearly, this model is for the Mexican and other markets where the Ram brand isn’t as strong as it is north of the border. And it is for that reason Fiat Chrysler may pull things off with a tiny, front-wheel drive utility-type truck.

As for the US and Canada, any truck smaller than a 1500 seems like a long shot. The long-rumored resurrection of the midsize Dakota pickup has largely been quelled by financial realities and Fiat Chrysler’s desire to support other brands, including Alfa Romeo. In any case, the Ram 700 has nearly zero appeal stateside, a market where even the smallest trucks are now midsize beasts.

Photos courtesy of Chrysler Mexico.

Kia Motors Announces Mexican Plant Venture

August 29, 2014 by admin Leave a Comment

Kia enters the Mexican market in a big way.

The subcompact Kia Rio may find a home in Mexico.

Korean automaker Kia Motors Corporation announced this week that it will build a new manufacturing plant in Nuevo Leon, a state located in northeast Mexico, not far from Texas. Kia’s investment will come in at $US1 billion and will represent the company’s second location in North America.

Kia Motors: On to Mexico

The new plant will join one in West Point, Georgia, currently operating at full capacity. Construction is expected to commence in September with the plant operational by early 2016. Kia Motors executives were in Mexico City to sign the agreement with Enrique Pena Nieto, president of Mexico, among the dignitaries present.

Speaking on behalf of the automaker was Hyoung-Keun (Hank) Lee, Vice Chairman of Kia Motors Corp. Said Lee, “We are committed to producing world-class quality vehicles here in Mexico that feature industry-leading styling and high-tech convenience and safety features that customers have come to expect from Kia, while making significant contributions to both the economic growth of the State of Nuevo León and the future development of the Mexican automotive industry.

Access to Affordable Labor

Annual capacity for the new plant has been set at 300,000 vehicles, pushing the automaker’s global build capacity to 3.37 million units, almost evenly divided between plants in Korea and abroad. The automaker hasn’t announced which models will be built in Mexico, but industry experts have named the Rio subcompact and Forte compact as two strong possibilities. Both models are produced in Korea; Mexico would give Kia the low-cost labor to profitability build cars south of the border.

Kia acquired 53,800,000 square feet (1,235 acres) to build its new plant, leaving ample room for suppliers to set up shop nearby. Although the company hasn’t announced how many people will work at the plant, a labor force of 2,000 to 3,000 individuals is typical for a plant this size. Several thousand more supplier jobs will also be created with the local economy receiving an enormous boost as well.

US Sales: On the Rise

Despite capacity constraints, Kia’s US sales are up 7.2 percent in a market showing a 5 percent boost through July 2014. The automaker’s growth is outpacing its Korean sibling, Hyundai, which is seeing a modest 1 percent increase year-to-date. Hyundai also has a US factory — located in Montgomery, Alabama — and taps Kia to build its Santa Fe crossover in Georgia. Combined US sales for the Hyundai and Kia brands are up by 3.7 percent year-to-date according to Good Car Bad Car.

Building in Mexico not only gives Kia access to low, albeit rapidly rising labor costs, but it also gives the company access to approximately 40 markets with which Mexico has trade agreements. Mexico, along with Canada and the United States, compose the North American Free Trade Association (NAFTA). NAFTA is a trade bloc, what eliminated trade barriers between the three nations and has spurred investment. NAFTA has been criticized by some as American companies move to Mexico to save on labor costs while costing US workers their jobs.

Mexico also will represent a new sales market for Kia, one of the few places in the world that the company has yet to penetrate. The automaker says that the Mexican plant will allow it to strengthen Kia’s “sales presence throughout the entire Central and South America region while freeing up supply from Kias domestic plants to address supply shortage issues in other regions of the world.”

Working With Hyundai

Kia’s growth has come largely through its relationship with Hyundai. The two companies comprise the Hyundai Kia Automobile Group with Hyundai supplying many of the platforms, engines and components used by Kia. Kia utilizes its own body shells and interiors to produce models that are differentiated from Hyundai.

Kia’s best selling model is its Optima sedan followed by the Soul multi-purpose vehicle and Sorento SUV. The Soul and Sportage SUV have accounted for nearly all of Kia’s growth so far this year.

Photo copyright Kia Motors.

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Capacity Unconstrained: Kia Plans Mexico Factory

June 5, 2014 by admin 4 Comments

Hyundai might benefit from Kia’s plant too.

Kia Rio hatchback — Kia Rio 5-door hatchback.

The Hyundai Kia Automotive Group is the fourth largest automotive manufacturer in the world with the Hyundai brand taking leadership worldwide. Kia, however, has been showing strength in several markets including in the US where it has been gaining on Hyundai.

Hyundai Kia Capacity Constraints

Sales for both brands have been held down in the past year as capacity constraints weigh in. Both manufacturers have just one North American plant with Hyundai’s based in Montgomery, Alabama, and Kia’s plant in Georgia. That West Point, Georgia, plant also builds the Hyundai Santa Fe, a model that Hyundai moved from Alabama soon after the plant opened.

Hyundai and Kia have been operating under an informal self-imposed capacity constraint as both US manufacturing plants operate at full tilt across three work shifts. Both companies also import cars from South Korea, but additional North American capacity is still needed.

Kia Mexico Manufacturing

On June 2, 2014, Reuters reported that Kia Motors will build a new plant in Monterey, Mexico. That plant will build two small vehicles including perhaps the Kia Forte and Kia Rio. With a capacity of 300,000 units per year, it might also build a Hyundai product such as its compact Elantra. That would free up space for Hyundai to expand Sonata production, its popular midsize sedan that has been updated for 2015.

Hyundai and Kia had been rumored to be looking at new locations in the southern United States including the former GM plant near Shreveport, Louisiana, the future home to the three-wheeled Elio Motors trike. The Korean automakers, however, prefer to build its factories from the ground up instead of taking over existing facilities.

The Hyundai-Kia juggernaut has been increasing its global and US market share steadily for more than a decade. A new factory is planned in China and the Mexican factory, if built, would take approximately 21 months to complete. Thus, production would not begin before spring 2016 even if groundbreaking were held today. Likely, Hyundai and Kia will lose market share in 2016 without the expanded capacity notes Reuters.

2014 Kia Forte

Hyundai Kia Pricing Advantage

Producing cars in Mexico would enable the Korean automakers to gain some stability as higher labor costs and currency erosion has made it difficult to maintain a pricing advantage. Both brands have been known for pricing their vehicles about 5 percent below competitor’s prices and including more standard content. With competing manufacturers also turning to Mexico to find low-cost labor, that pricing advantage has been slipping away. Mexican built cars, incidentally, come by way of NAFTA and are included in North American build capacity.

The Kia brand has enjoyed strong growth in the past few years as it taps Hyundai platforms and powertrains to build new models of its own. For instance, the Kia Optima is based on the same platform underpinning the Hyundai Sonata and the Kia K900 is a derivative of the Hyundai Equus.

Turbocharged: Hyundai Sonata midsize sedan.

Auto Trends: Hyundai Kia Sales

Both Kia and Hyundai posted record US sales for May 2014.

Kia enjoyed a 14.8 percent year-over-year increase, selling 60,087 units. Its best-selling Optima sedan continues to lead with 16,843 unit sold for the month. Other strong sellers included its Soul multi purpose vehicle at 15,606 units and its Sorento crossover utility vehicle with 10,548 units sold.

Hyundai sales rose by 3.7 percent to 70,907 units. The company’s Elantra compact continues to lead, with 21,867 units sold followed by the Sonata at 20,404 models distributed. In third place was the Santa Fe crossover at 10,638 units. This CUV is also Hyundai’s fastest growing model.

Together, Hyundai and Kia are battling Nissan for sixth place in US sales. GM is on top followed by Ford, Toyota, Chrysler and Honda.

Delayed: 2015 Honda Fit

May 27, 2014 by admin 3 Comments

The battlefield for small cars is an intense one with numerous compact and other small models available to entice first-time car buyers. Honda has its Civic, a compact model that competes with the Toyota Corolla, Nissan Sentra, Chevrolet Cruze and Ford Focus for customers.

On the subcompact level is the Honda Fit, a vehicle that is nowhere near as popular as the Civic. Yet, Honda has big plans for its smallest model, having invested more than $800 million to build a new plant in Celaya, Mexico. This is the first time that the Honda Fit will be built in North America.

That manufacturing plant was supposed to have begun producing the next generation Fit in April, but quality control and transportation issues have pushed back its release until June reports Automotive News.

Im thrilled that we’ve been able to greatly enhance and add to the Fits already excellent attributes to provide Honda customers with class-above features and refinement at such a value price point, said Jeff Conrad, Senior Vice President and General Manager of Honda. The 2015 Fit is practical, roomy, efficient, affordable and perhaps best of all, great fun to drive.

2015 Honda Fit

Subcompact Honda Fit

Nevertheless, the front-wheel drive, five-passenger subcompact will soon arrive and will position the Fit to better compete against several models. Those models include the Ford Fiesta, Toyota Yaris, Chevrolet Sonic, Mazda2, Mitsubishi Mirage, Volkswagen Golf, and the Nissan Versa. The Versa, including the Versa Note hatchback, is currently the best selling model in the segment, a position that Honda hopes it will soon take.

To get to greater sales Honda is aggressively pricing the 2015 Fit. The base Honda Fit LX with a six-speed manual transmission retails from $15,525. Choose the available continuously variable transmission and your starting price rises to $16,325.

The Fit EX outfitted with the six-speed manual transmission retails from $17,435. Choose the CVT and the base price comes in at $18,235. Honda also sells Fit EX-L CVT ($19,800) and a Fit EX-L CVT with Navi ($20,800) editions.

Engine Choice and Trim Levels

All 2015 Honda Fit models are powered by a 1.5-liter (1498 cc) four cylinder engine making 130 horsepower at 6,600 rpm and 114 foot-pounds of torque at 4,600 rpm. Fuel economy ranges from 29 mpg in the city and 37 mpg on the highway when equipped with a manual transmission to 33 mpg in the city and 41 mpg on the highway with the CVT. The Honda Fit is outfitted with a 10.6-gallon fuel tank and runs on regular grade gasoline.

The Fit LX comes equipped with a security systems with remote entry, intermittent wipers, a body-colored rear spoiler, automatic halogen headlamps, air conditioning, a rear view camera, power windows and door locks, cruise control, map lights, two 12-volt outlets, a cargo area light, and a 160-watt audio system with four speakers. This model also includes Bluetooth audio streaming, an auxiliary input jack, and speed-sensitive volume control.

Choose the EX or EX-L editions and your standard equipment includes a one-touch power moonroof with a tilt feature, smart entry and fog lights. Heated, power side mirrors with embedded turn signals are standard with the EX-L.

Other standard equipment with the EX and EX-L include Honda LaneWatch, push button start, HDMI port, cargo area tie down anchors, floor mats, a 180-watt, six-speaker sound system, audio display, and Pandora compatibility. All EX-L models upgrade to leather seats from cloth and include heated front seats.

Safety Features and Warranties

All 2015 Honda Fit models come equipped with stability control, traction control, an antilock brake system, electronic brake force distribution, brake assist and daytime running lights. Six airbags are included.

Honda also provides the following warranties with its new vehicles: a 3-year/36,000-mile new vehicle limited warranty, a 5-year/60,000-mile limited powertrain warranty, and a 5-year/unlimited-mile corrosion limited warranty.

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Fiat Chrysler Weighs Its Minivan Options

February 17, 2014 by admin 1 Comment

Chrysler presses Canada for financial support.

***Update: Chrysler Withdraws Financial Assistance Request to the Federal and Provincial Governments in Canada***

It was supposed to have been settled by now. If everything was done according to plan, Chrysler would have identified the brand slated to receive the next generation of its minivan and the one that would get its crossover derivative.

Chrysler minivans: Made in Canada.

A collection of Chrysler minivans, all built in Canada.

CEO Sergio Marchionne made it plain a few years back that only one minivan was needed with either the Chrysler Town & Country or the Dodge Grand Caravan transitioning to a crossover utility vehicle based on the platform underpinning the next generation minivan. That announcement has yet to be made, but minivan-related news is front and center.

Making an Investment

Instead of brand decisions, we now have Fiat Chrysler Automobiles (FCA) asking for as much as CAN$700 million in incentives from federal and provincial governments to update its two Ontario manufacturing plants. That contribution would partially defray the CAN$3.6 billion Fiat Chrysler Automobiles says it will cost to retool Windsor and update Brampton.

The Windsor plant has been the exclusive builder of Chrysler minivans since Dodge and Plymouth models were introduced in 1983. Brampton builds Chryslers large cars including the Dodge Charger and Chrysler 300. Together, the two assembly plants represent FCAs entire manufacturing presence in Canada.

That presence could be jeopardized if both Ontario and Canada decide not to contribute funds. For its part, the Canadians want FCA to pledge a long-term commitment to build cars in Canada reports Toronto’s Globe & Mail. The federal government recently announced that it wound invest another $500 million in its Automotive Innovation Fund, but it hasn’t promised that those funds will go to Fiat Chrysler. At least not exclusively.

Minivans to Mexico?

Marchionne raised eyebrows last month at the Detroit auto show when he said that the company had alternatives to continuing to build minivans in Windsor, reports the Wall Street Journal. That may include shifting product to Mexico where labor costs are much lower than in Canada. Of the three North American Free Trade Agreement (NAFTA) countries, Canada’s labor costs are highest followed by the United States and much further down the list, Mexico.

Canada and Ontario contributed billions of dollars in loan money in 2009 to help General Motors and Chrysler, loans that have since been paid back. Still, the country has shed more than 50,000 automotive jobs since 2000 and another 8,000 direct manufacturing jobs would be affected if Chrysler pulled up stakes. Tens of thousands of supplier and spin off jobs would also likely go away. In all, Chrysler employs 10,245 people in Canada as of Jan. 2014

Meanwhile, Down Under

A Chrysler exit would not decimate the country’s automotive industry composed of multiple manufacturers including GM, Ford, Toyota, and Honda. And, unlike Australia, the Canadian industry is heavily tied to the US and Mexico, with suppliers, components, and new vehicles moving back and forth across each border. Yet, it also raises the stakes for the remaining manufacturers, each competing in a global industry where maintaining operating costs is crucial for competitiveness and the bottom line.

Australia’s auto industry is in dire straits with Toyota following Ford and GM by announcing the end of domestic manufacturing within the next four years. The prospect that Canada might someday lose its manufacturing base and go the way of Australia is not lost on provincial and federal government leaders. What type of proposal they make to keep Fiat Chrysler from fleeing might also set a precedence for other manufacturers to follow as they weigh their own needs.

Photo courtesy of Fiat Chrysler Automobiles, N.V.

Volkswagen Hits 10 Million Unit Milestone in Mexico

August 23, 2013 by admin 1 Comment

A heritage VW Beetle marks the occasion.

Volkswagen de México -- Volkswagen of Mexico

VW workers celebrate a significant build
achievement in Puebla, Mexico.

Volkswagen’s US production cannot hold a candle to what is going on south of the border. In Mexico, the German automotive manufacturer has been building cars for nearly a half century including some models that have been sent to the United States.

On Aug. 13, the Volkswagen marked the 10-millionth vehicle it has built in Mexico, with that model a Volkswagen Beetle GSR limited edition in yellow and black markings.

Puebla Mexico Manufacturing

The milestone was achieved at Volkswagen de México’s Puebla manufacturing plant, recognized as the largest automotive plant in North America. That plant builds 2,500 cars on average each day; in 2012 it built a record 604,000 vehicles with 84 percent of its volume sent abroad.

On hand to offer tribute was Jonathan Browning, President of Volkswagen of America, Inc. Said Browning, “This is an important milestone and symbol of Volkswagen’s long-term commitment to the North American market. It’s only fitting that the milestone car is a Beetle in light of this being the 75th anniversary of the car. Puebla has been manufacturing quality Beetles and other Volkswagens for the United States for nearly 50 years, and continues to play a key role in our growth strategy.”

Volkswagen Group Growth

The Puebla manufacturing plant will continue to play a significant growth in fueling Volkswagen’s growth in North America and worldwide. The Volkswagen Group has committed to invest more than $5 billion in Mexico and the United States over the next three years including expanding its Tennessee plant and completing an Audi plant, also in Mexico.

Its all part of an overall strategy where Volkswagen would like to assume global car build leadership by 2018. Under its Group Strategy 2018 plan, VW plans to build more than 10 million vehicles annually, taking a greater share of the pie in emerging markets.

Production in Mexico

More than three million Volkswagen Beetles have been built in Mexico since 1967. Besides its iconic nameplate, VW manufactures Jetta, Jetta Sportwagen and Beetle Convertible models, all of which are sent to the United States. Beginning in 2014, Puebla will build the next generation Golf, supplying this model throughout North and South America.

The Beetle GSR is a new model, one that employs retro themes including yellow and black model markings inspired by the “Yellow Black Racer” of the 1970s. The new model is powered by a EA888 turbocharged and direct-injection 2.0-liter engine, what VW says gives it more power, torque and improved fuel economy. The GSR is a special and very limited edition model too as only 3,500 Beetle copies were built globally.

Surging Beetle Sales

US sales of the Beetle have been rising sharply topping 5,200 units in July with further gains expected in Aug. That model recently was recognized by the Insurance Institute for Highway Safety as a “top safety pick” the ninth Volkswagen model to garner that coveted safety award.

Photo courtesy of the Volkswagen of America.

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