Mexico’s Auto Output Holds Steady as U.S. Trade Pressure Mounts
Mexico’s auto industry built 1.64 million light vehicles in the first five months of 2026, nearly matching the pace set a year earlier, according to a report by Mexico Business News. The increase in exports comes as trade policy uncertainty continues to hang over the North American market. Data from Mexico’s National Institute of Statistics and Geography showed production fell just 0.09 percent compared with the same period in 2025, reports CBT News. Exports rose 4 percent to 1.39 million units while domestic sales climbed 4.9 percent to 627,609 vehicles. The U.S. took in 75.4 percent of Mexico’s total exports during the period, with North America as a whole accounting for 87.9 percent. Shipments to the U.S. dipped 3.2 percent year over year, but exports to Canada jumped 29 percent and Germany rose 32.7 percent. General Motors (GM) led production in May with 76,501 units assembled, followed by Nissan, Stellantis, Ford, and Volkswagen. GM also topped the export rankings, shipping 69,384 vehicles abroad during the month. New-vehicle sales in Mexico rose 4.9 percent in May to 127,100 units, marking the third straight month of growth. Sales of Mexico-built vehicles climbed 11.3 percent for the January–May period, while imports fell 6.5 percent. Click here for the full story.
Mercedes-AMG Sets Sights on 200,000 Global Sales with Broad Product Push, New Engines
Mercedes-Benz’s high-performance brand is ready to tap the overdrive button. Mercedes-AMG’s product pipeline is chock-full of new vehicles and redesigned models for the next three years.And with a new V-8 engine on deck, executives at the German performance subbrand are confident sales are primed to go even higher.Much higher. AMG aims to reach global sales of 200,000 by 2030, according to a May 19 investor presentation in Los Angeles. The new sales milestone, if achieved, would reflect a 38 percent jump over AMG’s 2025 deliveries of 145,000 vehicles, reports Automotive News. Such results would continue AMG’s notable growth spurt. Sales were around 69,000 in 2015, a company spokesperson said. The brand spent the past three years working on a strategy to reshape its portfolio, Mercedes-AMG CEO Michael Schiebe said. “Our plan is definitely to grow,” Schiebe said. “We have taken many, many decisions. All the products are now in the making and you just need to stay tuned because we are going to launch more than 27 cars in the next 36 months only for Mercedes-AMG.” The planned models will cover a range of sizes, segments and vehicle types, according to the presentation. Click here for the full story.
How Ferrari Controls Performance Through Selective In-House Manufacturing
Ferrari’s strategy for navigating the industry’s shift to electrified vehicles is to retain in-house control of technologies critical to maintaining its performance standards, Davide Abate, Ferrari’s chief industrial officer, said. Ferrari produces key technologies in its own facilities while sourcing high-volume, standardized components from suppliers, Abate said at the 2026 Automotive News Europe Congress June 10. Abate cited examples from the newly unveiled Ferrari Luce EV and the automaker’s broader electrification efforts:Ferrari produces the Luce’s electric motor rotors in-house because proprietary magnet technology and carbon-fiber jacketing directly affect motor performance. Stators, which use more standardized technology, come from external suppliers.Battery cells are produced by a supplier but are designed by Ferrari to ensure they satisfy the energy density and power density requirements for use in a sports car, Abate said. Ferrari outsources cell assembly to allow suppliers to scale production across multiple customers, reducing costs.Ferrari has followed this approach since beginning electrification in 2009. The 2012 LaFerrari used an in-house battery, allowing it to be upgraded later with newer technology under the Ferrari Forever program, which supports long-term vehicle usability. Click here for the full story.
Used-Vehicle Inventory Grows 4% as Demand Softens
Used-vehicle inventory expanded in May as retail demand softened and average listing prices climbed to their highest level since mid-2023, according to Cox Automotive’s analysis of vAuto Live Market View data. Franchised and independent dealerships closed May with 2.12 million used vehicles in inventory, a 4 percent increase from April, reports CBT News. Despite the monthly gain, inventory sat 0.6 percent below year-ago levels and trailed recent historical norms. Retail used-vehicle sales also slowed, with Cox Automotive estimating dealers moved 1.45 million used vehicles during the month, down 3.9 percent year over year and 2 percent from April. Economic pressures and rising vehicle prices likely weighed on demand, though improving credit availability helped offset some of those headwinds. Credit access reached its highest level since April 2022, and used vehicles continued to offer buyers a more affordable alternative to new models. Ford, Chevrolet, Toyota, Honda, and Nissan led all used brands, accounting for nearly half of every used vehicle sold in May. As inventory grew and sales slowed, days’ supply rose to 45, up one day year over year and two days from April’s revised level of 43. Click here for the full story.
Bank of America’s Weekly Rates Market Update
BofA Global Rates Research highlights that reflation is increasingly being treated as a non-tail scenario, with internal models assigning a meaningful probability to sustained nominal growth strength; risk sentiment and positioning indicators have turned more supportive, creating a setup where duration remains vulnerable as markets underprice the persistence of cyclical strength. Policy signaling risk is elevated into the upcoming FOMC transition, where even a neutral or data-dependent communication is framed as effectively hawkish in the current environment, particularly given the need to offset easing financial conditions and historically long duration positioning across investor bases. BofA Global Rates Research emphasizes front-end technicals and funding dynamics as a key near-term driver, with TGA rebuild, heavy bill issuance, and potential adjustments to Fed liquidity operations expected to tighten front-end conditions, supporting trades that express higher front-end yields, flatter curves, and pressure on SOFR/FF spreads. Click here for the full story.
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