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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.

Cigarette Racing unveils the AMG GT S-inspired 50-foot Marauder

The Cigarette Racing stand at the Miami Boat Show this morning hosted the latest in the eight-year collaboration between Mercedes-AMG and Cigarette Racing: the AMG GT S parked next to the fast-boat it inspired, the Cigarette Racing 50 Marauder GT S Concept. The vinyl ester resin and fiberglass go-fast boat is more than a matching Solarbeam yellow paint job with the coupe that inspired it. Like other carmakers who have partnered with companies outside the industry - such as Nissan's recent tie-up with NASA - there's an exchange of technology involved; Cigarette said that working with AMG on composites and bonding helped them drop 1,000 pounds off the Marauder GT S Concept compared to the standard Marauder twin-engine, which comes in at 14,200 pounds. Customers who order standard Marauders can request the weight reduction (for a price), but we were told that unless they plan to spend most of their time above 100 miles per hour, the extra weight contributes to a smoother ride. Mercedes head designer Gordon Wagener penned the exterior paint job and worked with Cigarette to design the cockpit trim, which would have seen him in familiar surroundings: Cigarette Racing owner Skip Braver is a long-time AMG customer, and the boat company based its bespoke department on the AMG Design Studio in Affalterbach. Every one of its boats is handbuilt in its factory in Opa-locka, Florida using some of the same processes seen in automaking, like bar codes to track the progress of hulls and components, computer controlled paint samples with digital files that can be sent around the world for matching, and doing all the stitching in-house to keep tabs on quality control. The engine compartment holds two, nine-liter, four-valve, DOHC, quad-cam, twin-turbocharged Mercury Racing engines with all-aluminum blocks, each one of them good for an electronically-limited 1,550 pound-feet of torque, and either 1,350 horsepower or 1,550 horsepower depending on whether you run regular 91-octane fuel or 116-octane race fuel. So yes, that's 3,100 hp and 3,100 lb-ft at once, if you go all out. Mercury says they're the most powerful powerful emissions-certified gas-powered marine engines you can buy. The engines don't have knock sensors, though, so you have to turn a key to register the kind of fuel you're putting in, and you can switch from one to the other when two 150-gallon tanks are down to 10-percent full.

Mercedes previews new C63 DTM racer alongside Edition 1

The new C-Class Coupe will undoubtedly be one of the main points of focus at the Mercedes-Benz pavilion in Frankfurt this year. But the Silver Star automaker will have more than just the base version to showcase. There's be the new AMG C63, and now two additional versions. First up is the Edition 1, the designation Mercedes often applies (in some markets anyway) to launch versions of exciting new models. For the C63 Coupe, the Edition 1 features a raft of upgrades, available in either standard (476 horsepower) or S (510 hp) states of tune. It's done up in one of two exterior appearance packages, in matte gray with either yellow trim or black. The Edition 1 also wears special 19-inch wheels in the front and 20-inchers at the back, ceramic brakes, enhanced aerodynamics package, more chrome and gloss-black trim, and an optimized interior with racing buckets. Alongside the Edition 1, Mercedes will also reveal the new DTM racing model in Frankfurt. And following the teaser sketch released the other day, it's giving us our first proper look at the new touring car right here. The new C63 DTM will replace the existing C-Coupe DTM (as it has been formally styled) that has represented the automaker in its local tin-top racing series since 2012 – winning seven races over the past four seasons, but not a championship yet. If looks are anything to go by, the new racing coupe could be up to the task. Special Model to Market Launch: Mercedes-AMG C 63 Coupe Edition 1: Inspired by Motorsport Affalterbach. Mercedes-AMG is bringing the C 63 Coupe Edition 1 special model to the starting line. The exclusive colour combination in designo Magno Selenite Grey with yellow film coating and black wheels with yellow painted rim flanges reflects the graphic design of the Frankfurt International Motor Show launch version of the Mercedes-AMG C 63 DTM racing coupe which will be used in the DTM next year. The special model is equipped with Performance seats and an aerodynamics package, highlighting its proximity to motorsport. The new Mercedes-AMG C 63 Coupe and C 63 S Coupe are also available as "Edition 1" special models from market launch. The extraordinary combination of exclusive design and equipment characteristics is inspired by the optical appearance of future Mercedes-AMG racing coupes which will compete in the popular DTM series in 2016. Two exterior designs address different customer wishes.