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U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.

Bentley designer hints at even faster Continental GT3-R

Does Bentley have room in its Continental GT lineup for an even more extreme version than the new GT3-R? Luc Donckerwolke seems to think so. Speaking with Autocar, the Bentley design chief suggested that an even more performance-focused Continental GT could be in the works, potentially ditching the heavy all-wheel drive system in an effort to further reduce weight, improve handling and drop even more ticks off the 0-60 time that's already down to a best-yet 3.6 seconds in the GT3-R.
To borrow a page from the same playbook used not only by sister-companies Audi and Porsche but also by Renault and Jaguar (to name just a few), we'll tentatively call it the Continental GT3-RS. Whatever the name, though, power would likely come from an even more potent version of the 4.0-liter twin-turbo V8 co-developed with sister-company Audi. Considering that engine already produces 500 horsepower in the Continental GT V8, 521 hp in the V8 S and 572 hp in the GT3-R, we could be looking at as much as 600 horses to make it the most powerful V8 model to date. With that much juice, it would even eclipse some of the W12 models that start at 567 hp in the core Continental GT and range up to the 616 hp in the Speed, which currently ranks not only as the most powerful Conti yet, but also the fastest road car Bentley has ever made.
Donckerwolke says that Bentley has already sold the entire production run for the Continental GT3-R and that customers are already clamoring for something more focused. Younger buyers are likely to be even further drawn to the brand by the ne-plus-ultra Conti, especially if the racing team advanced from its current fifth place in the Blancpain Endurance Series standings.

Bentley putting Mulsanne-based Azure, Brooklands back on the table [w/poll]

Big plans are afoot at Bentley. The quintessentially British automaker has just about signed off on the final version of its new SUV, and will surely roll out more versions of the Continental in the coming years, but that's not all. It's said to be considering a new sports coupe smaller than the Continental GT, but the latest reports coming in from the UK suggest that it also has plans for the Mulsanne's platform.
Currently, the Mulsanne is only available in one configuration, but Bentley is widely expected to be bringing a new, more powerful Mulsanne Speed to the Paris Motor Show this fall with around 550 horsepower. That's not all, however, as word comes in that the Flying B marque is planning to re-introduce both the Azure and the Brooklands as competitors to the Rolls-Royce Phantom DHC and Phantom Coupe, respectively.
For those who don't remember, the Azure and Brooklands were a pair of two-doors based on the Arnage that preceded the Mulsanne at the top of Bentley's range. The Azure was a convertible and the Brooklands a fixed-roof coupe, both of them larger than the Continental GT and powered by the company's evergreen (yet decidedly un-green) 6.75-liter V8.