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U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.

2015 Mercedes-Benz SLK250 Quick Spin [w/video]

We car writers tend to have a occupationally limited focus. Autoblog's stock in trade is automotive news and new car reviews, which often steers us towards forgetting existing models about 17 minutes after we've driven it a second time. You guys like reading about the new hotness, too, so it tends to work out. But the wonderful fact is that every car sold today will have a rich/interesting/heroic/tragic life for years to come. And, occasionally, even obsolete makes and models stay interesting. That was my thinking when this 2015 Mercedes-Benz SLK250 came into our fleet. Set to be replaced with the SLK300, with that car's 2.0-liter turbo'd engine, the 250 is already running out the clock in Mercedes dealerships. What's more, my test car came complete with – are you ready for this? – a six-speed manual transmission. I can't tell you the last exact model of Benz that I'd driven with a stick shift, but I can assure you that its engine was carbureted. Considering the odd spec and replacement timeline, my question, as I drove the SLK for a week: was this a unicorn destined to be a driver's dearest find? Driving Notes: Let me not bury the lede any more: the six-speed isn't a game changer for the SLK. Yeah, over the course of a few days I came to be comfortable with the slightly vague clutch and notchy shifter, but I didn't love it. I went blasting on a few back roads, and found the hand-shaker more involving to use than the standard auto, but it was long to throw and not overly precise when I moved up and down between second, third, and fourth. On the other hand, the old 1.8T under the SLK250's bonnet still felt well matched with the base SLK's boulevardier mission. Output of 201 horsepower and 229 pound-feet of torque doesn't give enough gumption to move the hardtop German lump with authority, but it was still enough to be quick off the line and offer easy highway passing. The turbo four didn't sound bad under full throttle, either, but it did rattle like old plumbing when idling in the driveway. Speaking of rattling: the adjustable and Airscarf-equipped seats did a lot of it. (Airscarf, you'll recall, is M-B's brand name for an in-seat fan that blows hot air on your neck; it's nice on a cold day.) Though comfortable and mildly bolstered, the driver's chair made all kinds of funny noises when I got in, got out, or cornered over 20 miles per hour. That's rough for a luxury car with 6,000 (or so) miles on it.

2015 Mercedes-Benz GLA priced from $31,300*

Mercedes-Benz has kindly let loose the price of the 2015 GLA-Class, telling Autoblog.com that the base 208-horsepower GLA250 in two-wheel drive will go for $31,300 *not including a destination charge of $925. That makes for $32,225 in total to get one off the lot, a price predicted as early as last year and in our recent First Drive. The other two available models can push power to all four wheels, and after the destination fee is applied the GLA240 4Matic (pictured) will be $34,225 while the 355-horsepower GLA45 AMG will change lives and wallets to the tune of $49,225.
On the base scale, that puts the GLA250 just a few hundred dollar bills above the more powerful, rear-wheel drive BMW X1 and a stack of hundreds below the less powerful, front-wheel drive Audi Q3. If you're keeping in-house score, the GLA250 comes in at $1,400 above its sedan platform-mate with the same engine, the CLA250. At the high end, however, the competition doesn't have anything that can touch the AMG trim. Not that it should matter all that much - Mercedes needed something to keep these buyers in the family, and now they have it. If any of them should need even more power and more money spent, then there's always that 394-hp Brabus flavor. We'll have more info and details on each trim when Mercedes unleashes the shebang in the not-too-distant future.