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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.

Mercedes-Maybach Ultimate Luxury fully revealed, tea set and all

Mercedes has officially unveiled its Mercedes-Maybach Ultimate Luxury concept following a leak of most of the details last week. As we learned last week, the unusual looking sedan-SUV crossbreed is fully electric with four motors producing a whopping 750 horsepower. Combined with an 80 kWh battery, Mercedes estimates it should have a range of over 200 miles on the European test cycle. It also can handle extremely fast charging from DC chargers outputting 350 kW. Mercedes claims this allows it to gain 60 miles of range in 5 minutes. But there are a number of interesting details that weren't leaked. Many of them have to do with the car's Chinese inspiration, which is perhaps not that surprising for a car that makes its debut in China. The body style is the first influence, which Mercedes says combines the sedan and SUV, the best-selling car classes in the country. On the inside, there are a pair of cues inspired by China. The first is the ebony wood trim that Mercedes calls "Magic Wood." The company says it's very similar to that used in Chinese furniture. In the back, between the two highly adjustable white leather seats with rose-gold stitching, is a complete tea set. And not only does it contain all the containers for tea, but it actually has a variety of teas on offer. They're there to be used in conjunction with the car's relaxation modes that combine lighting, music and scents to set the mood. It's hard to say whether this concept will spawn a production model, since the body style is unlike any currently offered by Mercedes-Benz. But with the crossover SUV market staying hot, and competitors such as Audi and BMW bringing out extra-large SUVs, we wouldn't be surprised if Mercedes eventually offers at least a Maybach-level version of its GLS-Class, if not its own model. Related Video:

2016 Mercedes-Benz GLC live from Germany

The introduction of the Mercedes-Benz GLC at Hugo Boss headquarters outside of Stuttgart was another step in the evolution of brand cohesion at the Three-Pointed Star. The twin philosophies reshaping the company's products are "Sensual Purity," the brand's design language, and "Modern Luxury," the umbrella term for its wood-and-technology approach to interior splendor and driver assistance systems. That meant the GLK, already a contrarian in the segment thanks to its "interesting" look and cozy cabin, was an outcast in Mercedes' own SUV lineup. The GLC fixes that, for those of you who thought it needed fixing. Gone are the sharp creases and angles inspired by the G-Class, replaced by a the curves dictated by brand purity. To this writer, it looks like a smaller version of the new GLE. Which makes this corporate exercise another in a line of good-looking-yet-less-distinctive successes. Less confrontational outside, the GLC is downright inviting inside. The cabin that impressed us in the C-Class is equally impressive here, particularly when optioned with the Designo leather and open-pore wood. The rear quarters feel roomier than the additional 1.3 inches in legroom would make you think, and it's the same with the three extra feet of cargo space – there's a lot of room behind the rear seats. One thing to note: the hybrid (which we won't get initially) loses a fraction of that extra room with a slightly higher load floor over the batteries. Although it makes less visual impression outside, the G-Class hasn't been forgotten here. The godfather of the lineup is the reason for stressing the GLC's off-road capability. We don't really believe the GLC will need to pass any off-road exams – at least, not on purpose – but that's not the point. By including such capability, Mercedes establishes a concrete connection with its war-tested and thoroughly badass SUV halo, a connection that none of its competitors can make save for Land Rover. On that subject, due to different regulations, the US-market GLC will have slightly different bumpers; instead of the 31-degree approach angle and 25-degree departure angle other markets get, our model will allow a maximum of 28 degrees front and back. Those numbers put in the same off-road playground as the Range Rover Evoque.