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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.

2023 Bentley Bentayga Extended Wheelbase revealed as new flagship

Bentley has been without a true flagship model since it ended production of the Mulsanne in 2020. It pledged to fill the gap, and it kept its promise by developing a longer version of the Bentayga called Extended Wheelbase (EWB) that offers passengers a limousine-like cabin. Stretching the Bentayga, which is Bentley's best-selling model, was more difficult than it might sound; the Volkswagen-owned British firm notes that it spent a nine-figure sum on the new model. It notably redesigned the side panels, the underbody, the rear doors and the roof. The investment should pay off, because the EWB will account for about 45% of Bentayga sales when it enters production later in 2022. About 7 inches were added to the Bentayga's wheelbase, and the rear-seat passengers are the sole beneficiaries of the extra sheet metal. In its standard configuration, the EWB offers a 4+1 seating configuration with outer rear seats that are heated, ventilated, 16-way power-adjustable and capable of giving you one of five massages. Buyers who want the ultimate in comfort can order the Airline Seat Specification, which Bentley calls "the most advanced seat ever fitted to a car" — that's a bold statement. This option brings individual rear seats with a backrests that can recline to a 40-degree angle and a Postural Adjustment function that changes the shape of the seat to ease pressure points. Interestingly, the system is capable of providing 177 adjustments every three hours and making a three-dimensional twist. Selecting the Airline Seat Specification also brings a system called Seat Auto Climate that relies on sensors to maintain a pre-set seat temperature; passengers have six levels to choose from. The contact temperature and the surface humidity are both measured on the cushion and in the backrest, and the seat's heating and ventilated elements are activated as-needed to ensure the occupant is comfortable. Alternatively, buyers can order one of two additional configurations called Four Seat Comfort and Five Seat, respectively. While the regular-wheelbase Bentayga is available with three rows of seats, the EWB is two-row only because it caters to buyers who primarily want space. The list of options is astonishingly long; Bentley notes that 24 billion trim combinations are possible.

VW CEO lost his job over buggy software that delayed new models

It says a lot about the state of the auto industry and where it's going that software problems have cost the CEO of a carmaker his job. Volkswagen ousted Herbert Diess as chief executive officer after severe software-development delays set back the scheduled launch of new Porsches, Audis and Bentleys. This was untenable considering buggy software postponed the debut of VW’s initial rollout of ID models, and customers are still having to drop off their cars at the dealer for updates the company has struggled to make over the air. Sure, Diess also didnÂ’t do enough to make allies and became increasingly isolated due to his hard-nosed leadership style. In his push to transform the company into an electric-vehicle leader, he repeatedly clashed with labor leaders by warning VW was losing out to Tesla and needed to cut thousands of jobs. But failures at the carmakerÂ’s software unit Cariad ultimately eroded DiessÂ’s support from the powerful Porsche and Piech family that calls the shots. Back in December, VW overhauled its management board, stripping Diess of some responsibilities while tasking him to turn around Cariad. While thereÂ’s been a lot of re-arranging since then, Diess didnÂ’t manage to make the issues go away. Discord at Cariad has pushed back the rollout of important new models including the electric Porsche Macan, a high-volume sport utility vehicle for the division thatÂ’s planning an initial public offering in the fourth quarter. AudiÂ’s new line of Artemis EVs has been delayed by around two years to 2027. And VWÂ’s ultra-luxury brand Bentley may not be able to go all-electric by the end of this decade as planned because of the software issues, Automobilwoche reported earlier this month. “Taking over the ship at Cariad seems to have been DiessÂ’s downfall,” said Matthias Schmidt, an independent auto analyst based in Berlin. VWÂ’s solutions to challenges tend to reflect its status as an industrial behemoth: itÂ’s able to throw lots of money and people at its problems. But modernizing the company for the digital age is going to take bringing in talent and building skillsets outside its traditional zones of expertise. Drivers increasingly demand intuitive user interfaces and services that could create new revenue streams, if done correctly. “Software is the key to the future,” TeslaÂ’s Elon Musk tweeted when one of his followers asked about VW switching CEOs. Diess certainly didnÂ’t lack ambition.