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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.

Petrolicious relives history with Stirling Moss and his Mercedes SLR

We take it as a given that lap records will keep getting beaten. That's just the way things work: the development of racing cars proceeds at breakneck speeds, dwindling lap times down over the ages. Not at the Mille Miglia, though. The legendary Sir Stirling Moss won the famous Italian race together with journalist Denis Jenkinson in 1955, recording an almost unfathomable average speed of nearly 98 miles per hour in the Mercedes 300 SLR bearing the number 722 – the inspiration behind the extreme SLR McLaren Stirling Moss edition speedster that debuted seven years ago. Nobody (not even Moss himself) managed to beat that time in the subsequent two years before the race was shut down for good. It was only revived decades later as an historic rally that's more about consistency and, by its nature, doesn't put that record in contention. This year's event is coming up soon, so the cinematographical artisans at Petrolicious caught up with Moss and that legendary SLR – perfectly preserved as it has been by Mercedes – for a drive down memory lane.

Next Mercedes-AMG E63 to produce around 600 hp

"Sources" have told Autocar that the coming Mercedes-AMG E63 will get "something in the range of" 600 horsepower from a "next step" development of the 4.0-liter, twin-turbo V8 currently in the C63 sedan. Since the standard E-Class isn't due for introduction until the 2016 Detroit Motor show, we're probably a year away from finding out if "something in the range of" actually means a square 600 hp when the car the AMG E63 is revealed. Right now the E63 S is powered by a 5.5-liter twin-turbo V8 it shares that engine with the CLS63, S63, SL63, and G63, and all but the G63 get 577 hp from that engine. The 4.0-liter V8 in the C63 S is rated at 503 hp in the S model, the same as the dry-sump version of that engine that gets 503 hp in the AMG GT. Point being the jump to 600 hp isn't outrageous, and would keep up with the numbers rumored for the next BMW M5. New turbos will likely be responsible for much of that power, with AMG's powertrain chief having told Road & Track that the present turbos are doing all the work they were designed for. Depending on where the much lighter AMG GT3 road car comes in, the next AMG E63 should be the most powerful V8 model in the range. There'll be plenty of other doodads besides, like a new nine-speed automatic, 84-LED adaptive headlights, remote controlled parking, smartphone-activated NFC-based unlock and vehicle start, Vehicle-to-X communication, adaptive cruise control that recognizes speed limit signs, and a massive advance in the suite of Mercedes Intelligent Driving features. Related Video: News Source: Autocar Mercedes-Benz Luxury Performance Sedan mercedes-amg e63