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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.

Land Rover Defender V8, next Range Rover, new BMW M3 share the Nurburgring

From open-track days to 24-hour races, so many events are held on Germany's Nurburgring track that carmakers need to share the tarmac with their rivals to put new models through their paces. Industry pool days are normally closed to the public, but a seven-minute video reveals what Land Rover, BMW, and several others are testing. Posted on YouTube by StatesideSupercars, the video shows prototypes racing around the track in the mid-summer heat. Land Rover's engineers are busy putting the final touches on the V8-powered variant of the new Defender, which our spies have previously spotted testing in its home country of England, and they're developing what looks like the high-performance, SVR-badged version of the next-generation Range Rover due out in 2020. As we reported earlier in 2020, the hot-rodded Defender packs a 5.0-liter V8 between its fenders, though its horsepower and torque outputs remain under wraps. Unverified rumors claim it will arrive as a limited-edition model to avoid sending Land Rover's fleet-wide CO2 emissions through the roof. And, the video confirms chassis engineers have made extensive modifications to the SUV's suspension, partly to keep body roll in check. Walking down the pits, members of BMW's testing team are getting up early to put track miles on an enigmatic variant of the face-lifted M5, and on the next-generation M3. We've already seen the M5 in the metal, so why is it still camouflaged? One possible answer is that we're looking at the rumored CS version, which should receive a 641-horsepower V8 thanks to software tweaks and a better cooling system. The simpler (and more boring) possibility is that BMW isn't quite done testing the M5, and it doesn't want to waste time removing the black and white wrap. Your author regularly spotted i8 prototypes in full camouflage regalia months after its debut. As for the M3, much has already been said about its mammoth grille, which seemingly mirrors the one worn by the new 4 Series. Autoblog drove a pre-production prototype in June and walked away impressed. It receives an evolution of the X3 M's 3.0-liter straight-six turbocharged to 473 horsepower, though selecting the optional Competition package will increase that figure to 503. And, fear not: The six-speed stick is coming back. Land Rover and BMW aren't the only companies playing on the 'Ring.

Jaguar Land Rover UK factories could shut down in two weeks due to coronavirus

COVENTRY, England — Jaguar Land Rover has enough parts from China to maintain its British production for the next two weeks but not beyond that at the moment, Chief Executive Ralf Speth said on Tuesday. Britain's biggest carmaker, which operate three car factories in its home market, joined major global companies such as Apple in warning of the impact of the virus on supply chains. The rapidly spreading virus has killed nearly 1,900 in China and stricken some 72,000 people, confining millions to their homes, disrupting supply chains and delaying reopening of factories after the extended Lunar New Year holiday break. "We are safe for this week and we are safe for next week and in the third week we have... parts missing," said Speth when asking about the potential impact on British production. He said the firm's Chinese factory would open next week and was "safe for the very first week." Sales were not currently happening in China and it was unclear when they would return, he added. The boss of Tata Motors, JLR's parent company, speaking at the same event, said the company does not have sufficient visibility regarding parts suppliers from China. "We are safe for the month of February and for a good part of March," said Guenter Butschek. "Are we fully covered at this point of time for the full month of March? Unfortunately...not." Related Video: