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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.

BMW is ready for our inevitable EV future  

Is "rolling lithium" a thing, yet? Because BMW is trying to make this — the opposite of " rolling coal" — happen at this year's Los Angeles Auto Show. The Bavarian vehicular group is showing five all-new electric-powered concepts or production models in L.A. These include the C-Evolution, a 99-mile range scooter from BMW Motorcycles; the 150-mile range, two-door hardtop Electric Concept from Mini; and three vehicles from its advanced i sub-brand: the i3S, a sportier and more potent version of the brand's electric commuter nodule; the i Vision Dynamics four-door coupe concept, featuring a sporty four-second 0-60 time and a professed 373 mile range; and the long-promised roadster version of the i8 supercar, with just two seats, a bikini top, and an enhanced power pack providing 18 miles of range. The unveiling of these vehicles in Los Angeles makes perfect sense to us. California is one of the world's largest markets for luxury automobiles. It is also America's biggest market for electric-powered vehicles. Studies show that the state's combination of fiscal incentives, trendsetting cultural positioning, legislative requirements and massive population contributed to the purchase of half of the country's EVs and hybrids this decade. "The customers for the brand are mainly on the West and East Coasts, and the California customer especially is interested in sustainability and environmental protection," said Robert Irlinger, head of BMW's advanced i sub-brand. The bigger question revolves around BMW's larger EV strategy. Given the current global regulatory environment, with its rightful pressures on increasing efficiency and decreasing emissions to help soothe our warming planet and save all life on it, luxury automakers seem to be making a push toward developing a range of battery-powered vehicles to be available around or after the start of the next decade. It seems BMW, with its varied subsidiaries — from lightweight scooters to ultra-luxury barges — is uniquely poised to provide an array of such vehicles. "In the first stage of i back in 2013, we brought what you could call 'bookmark' cars to the market — the i3 commuter and i8 sports car — to show the range of what an electric vehicle could be," said Irlinger. "Now, we are seeing growing interest from customers to bring electrification to the heart of the brand, even to a sport sedan like our i Vision Dynamics four-door coupe.

Mini Clubman finally released with All4 all-wheel drive

Update: Mini has just revealed US pricing. The Mini Cooper Clubman All4 will start at $26,750, and the Cooper S Clubman All4 will start at $30,300. Both prices include destination. By now, you're surely familiar with the joke about how cars from Mini are no longer... well, mini. We won't repeat it here (oops, too late), except to say that the first vehicle that really pushed Mini's historic boundaries was the original Clubman in 2008. That machine featured a stretched wheelbase, an extra door on one side and an unconventional barn-door-style rear opening. For 2016, the Clubman recipe was revised with an even longer wheelbase and more conventional side doors, though still with the split rear hatch. Now, finally, the Mini Clubman is available with all-wheel drive. As you would expect from Mini, the new Clubman carries All4 branding. A propellor shaft sprouts from the front differential, and a new rear diff is added with an electrohydraulic clutch to send power to the rear wheels when needed. Mini promises that its All4 system will not only be a boon in inclement weather, but will also aid high-speed handling. We look forward to putting those claims to the test. Drivetrain options are borrowed from the standard front-wheel-drive Clubman range. A 134-horsepower three-cylinder comes in base Clubman models, and a 2.0-liter mill with 189-hp powers upgraded Clubman S models. An eight-speed automatic with paddle shifters and launch control is optional, though shift-yourself purists will surely opt for the standard six-speed manual. Mini says the Clubman S All4 can record a 0-60 time of 6.6 seconds with the automatic, or 6.7 with the manual. That's a couple tenths quicker than the front-drive Clubman S. Cargo space remains at 17.5 cubic feet with all seats in place, or as much as 47.9 with the back seats folded, so the rear differential and propellor shaft don't impinge on passenger space. Fuel mileage figures haven't yet been released, but we'd expect a small drop from the standard Clubman's 25 city and 35 highway ratings. We'd also count on a price increase of a few thousand dollars to get all-wheel drive. Feel free to peruse the press release below for more information. SUPREME DRIVING FUN IN EVERY SITUATION: THE NEW MINI CLUBMAN ALL4 Woodcliff Lake, NJ – January 19, 2016 – The market launch of the new MINI Clubman sees the latest model generation of the British brand embark on its advance into the premium compact segment.