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Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

Volkswagen decides to keep Lamborghini and Ducati, transfers Bentley to Audi

Investors in the market for a high-end Italian manufacturer that peddles performance will need to keep looking. Volkswagen announced it will hang on to Lamborghini and Ducati in the foreseeable future. Executives in Wolfsburg, Germany, are making far-reaching changes to the Volkswagen Group to reboot it with a big focus on technology. Credible rumors claimed that the people in charge of the carmaker wanted to carve out Lamborghini — which owns Ducati — and ultimately list it, or at least a chunk of it, on the stock market in order to fast-track the group's electrification strategy. Going electric is expensive, so selling Lamborghini would have helped fund the expansion, and high-octane supercars don't easily go hand-in-hand with zero-emissions cars. "Volkswagen needs to change from a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering to a digital company that reliably operates millions of mobility devices worldwide," summed up Herbert Diess, the group's boss, during a September 2020 meeting. His team ultimately decided not to fully divest both brands. It's too early to tell whether part of Lamborghini will be listed on the stock market, as some insiders have suggested, or if those plans are off the table, too. Changes are coming to Bentley as well. While it's not being spun off either, it will fall under the Audi umbrella starting on March 1, 2021. Volkswagen explained linking the two companies will "allow for synergies to be achieved as part of the electrification strategy of the two premium brands," a statement which suggests they will share a growing number of components during the 2020s. Unverified rumors claim that Bentley will notably get its own version of an ultra-luxurious electric SUV code-named Landjet that Audi is currently developing. We've reached out to Bentley for more details, and we'll update this story if we learn more. Bugatti's future wasn't mentioned in the release; unconfirmed reports suggest it will be traded for a stake in Croatian start-up Rimac. Volkswagen's supervisory board also reaffirmed its support for Diess, who was appointed CEO in 2018 and who has played a significant role in the company's transformation. Finally, the board approved the development of what a statement refers to a future leading electric vehicle sold by the Volkswagen brand that will be developed and manufactured in Wolfsburg.

Top London design students imagine Bentley in 2050

Imagination is the birthplace of good design. Shapes, curves, and edges are formulated inside an artist's mind before spilling onto a sketchbook page and taking shape as an automobile. The Royal College of Art in London aims to nurture this within its mobility students. In a recent project, vehicle design students of the MA Intelligent Mobility program brainstormed how the future of Bentley Motors would transpire in physical form. The challenge asked, "What will British luxury mean in 2050?" In total, 24 designer hopefuls turned in designs to a judging panel of RCA teachers and members of the Bentley design team. These same teachers also helped the students throughout the process. Of the 24, only four designs were plucked and highlighted, seen in the concept sketches above. Eunji Choi's "Elegant Autonomy," which looks like a mesh between a luxury yacht and a grand piano, took a high-class approach to what driverless cars might look like. Jack Watson's "Stratospheric Grand Touring," the teardrop pod on legs, makes note that without the worry of travel difficulties, home could be literally anywhere. Irene Chiu's "Luxury Soundscapes," seen from the overhead and cockpit views, reimagines a car's cabin as a tranquil safe space. Kate NamGoong's "Material Humanity," which most resembles a current-age car while invoking historic Bentley design, offers a future where the way to stand out from the crowd will be to occasionally drive a combustion engine like "the old days." The rarity of such an engine will form a niche for craft exposed engines, much like is true of high-end watches. We think we like that one best *wink*. The intent for the Intelligent Mobility program is to lead the proclaimed third age of automotive design. It is meant to work toward a future of interconnected megacities, flying cars, driverless vehicles, and sustainable energy and materials. The biggest problem with the future? It'll have new innovations and worse problems even the human mind not be able to imagine. Related Video: Featured Gallery Future of Bentley, Royal College of Art View 16 Photos News Source: Royal College of Art Design/Style Green Bentley Autonomous Vehicles Luxury