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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.

Audi confirms autonomous tech for next-gen A8

Like so many of its rivals, Audi is hard at work getting its autonomous driving technology up to speed and ready to reach the market. And now it's revealed when we can expect that time to come – or at least in what form it will arrive. In announcing the achievements of its latest RS7 Piloted Driving prototype, Audi has confirmed that the system will be offered for the first time on the next A8, the upcoming iteration of the German automaker's flagship sedan. Just as we heard this past January, the next-gen A8 will be able to drive itself around town at speeds of up to 37 miles per hour. Ingolstadt still isn't saying when we can expect the new A8 to arrive, but considering that the current model has been around since 2009 (albeit with periodic updates along the way) and that its key rivals – the Mercedes S-Class and BMW 7 Series – are both much newer models, Audi shouldn't be waiting much longer to launch its new flagship. The announcement was made as part of the reveal for "Robby," the latest version of the company's self-driving RS7 concept. The previous version, dubbed "Bobby," was based on the same model, and gave our man Jonathon Buckley over at Translogic a run for his money around Ascari a few months ago. (We'll let you watch the video below to see who fared better). But the new version is a good 882 pounds lighter, lapping the Sonoma Raceway (previously known as Infineon or Sears Point) in 2:01.01. That's in what is ostensibly still a road car, just one that's operated by a computer. The fastest lap ever recorded on the full 2.5-mile circuit, in case you were wondering, was also achieved in an Audi, but that was the R8 Le Mans Prototype that Allan McNish hustled around in a 1:20.68 qualifying lap. Related Video: 07/13/15 Sonoma/Ingolstadt Faster than a sports car driver: Audi pilots itself on US race track - Testing the new-generation Audi RS 7 piloted driving concept - Top lap times on Sonoma Raceway in California Piloted driving at Audi is approaching production readiness at race pace. On one of the world's most challenging race tracks, the Sonoma Raceway in California, the latest generation of the Audi RS 7 piloted driving concept has surpassed previous top performances once again. Audi will be offering piloted driving for the first time in the upcoming generation of the Audi A8.

Audi RS Q3 is funky, chunky, spunky forbidden fruit [w/videos]

After salivating over the Audi RS6 Avant last night, we're happy to see yet another RS-branded Audi here on the show floor at the Geneva Motor Show. Meet the RS Q3, Audi's first ever high-performance crossover, showing what's possible when the Ingolstadt automaker brings its best sporting bits to its smallest CUV.
Powering the RS Q3 is Audi's 2.5-liter turbocharged five-cylinder engine - the same one found in sweetie-darlings like the TT RS and RS3. Output is rated at 310 horsepower and 309 pound-feet of torque, sent to all four wheels via the automaker's seven-speed S-tronic dual-clutch transmission. Weighing in at just over 3,800 pounds, the RS Q3 is indeed a porky little pig, but no matter - that forced-induction fire will propel the small crossover to 62 miles per hour in five and a half seconds. And that's with launch control, too.
The RS Q3 certainly looks the part of a proper sporty Audi, with exaggerated air vents and bulgy, aggressive bits all around. Honestly, we like the way the RS package has translated to the Q3 form - this design really works well on the smaller CUV package. Inside, performance-minded fittings like a flat-bottomed steering wheel, upgraded gauges and sport seats bring the whole RS pack full circle. We'll admit, we're definitely intrigued by this little guy.