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Trump turns his unpredictable ire towards German carmakers

President-elect Donald Trump likes to be unpredictable. During the election, he used the phrase in reference to foreign policy and dealing with terrorism. But he's using the same tactic with the automotive industry, making broad statements that send manufacturers into emergency-response mode. The latest salvo comes from an interview with Germany's Bild, where Trump threatened a 35-percent import tax on German manufacturers. ( Reuters covers the highlights in English here.) "If you want to build cars in the world, then I wish you all the best. You can build cars for the United States, but for every car that comes to the USA, you will pay 35 percent tax," Trump said. Trump's comments seem to be directed at manufacturing in Mexico, although it's unclear if the comments refer to any import from a German automaker or just those from south of the border. BMW is building a $1-billion plant in San Luis Potosi, Mexico, where it plans to assemble the 3 Series. Mercedes-Benz is joining up with Nissan to build a new facility in Aguascalientes near the Japanese company's existing factory. And Volkswagen recently expanded its massive footprint in Puebla to build the new Tiguan as well as a separate factory for the Audi Q5. Reuters states that Trump thinks there's not enough reciprocity between Germany and the United States, as Germans don't buy Chevrolets at the rate American buy Mercedes-Benz Vehicles. At present, only the Corvette and Camaro are sold in Germany. The German subsidiary of Chevrolet parent General Motors, Opel, is the fifth-ranked automaker in the European Union, ahead of FCA but trailing Ford, VW, and both French auto companies. In response to Trump, Germany's deputy chancellor (Chancellor Angela Merkel is shown above) and minister for the economy, Sigmar Gabriel, did not mince words. As reported by The Guardian, Gabriel said "The US car industry would have a bad awakening if all the supply parts that aren't being built in the US were to suddenly come with a 35% tariff. I believe it would make the US car industry weaker, worse and above all more expensive." Asked what it would take for Germans to buy more American vehicles, he said "Build better cars." Gabiel also noted that BMW's largest plant is already in the US. The Spartanburg, SC plant exports about 65 percent of its 400,000-unit annual production to foreign markets and directly employs 8,000 workers according to BMW.

VW recalling 38k Jettas, Passats, Golfs and Beetles for fuel leak

Earlier we reported on a recall issued for the 2015 VW Jetta regarding a problem with the headlights, and now Volkswagen and the National Highway Traffic Safety Administration have issued another recall for a separate issue affecting not only the Jetta, but several other models as well. The issue revolves around a sealing cap in the fuel rail, which could leak fuel into the engine compartment and potentially cause a fire. The problem affects an estimated 37,979 vehicles in the United States, including the 2014-15 Jetta (manufactured between March 28 and November 24, 2014), the 2014-15 Passat (April 7 to November 18), the 2015 Golf and GTI (July 1 to November 20) and the 2014-15 Beetle and Beetle Convertible (March 31 to November 27). That covers pretty much the entire range offered by Volkswagen of America, short of the Tiguan and Touareg crossovers (and the discontinued Eos convertible). Considering, though, that VW routinely sells around 30,000 vehicles in the US each month, the small number of vehicles being recalled (relative to the quantity out there) tells you this recall really only affects a specific cross-section of models. Owners of the affected vehicles can expect to be contacted by their dealers to have the fuel rails replaced. RECALL Subject : Fuel Leaking Into Engine Compartment Report Receipt Date: DEC 22, 2014 NHTSA Campaign Number: 14V809000 Component(s): FUEL SYSTEM, GASOLINE Potential Number of Units Affected: 37,979 Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2014-2015 Jetta vehicles manufactured March 28, 2014, to November 24, 2014, certain 2014-2015 Passat vehicles manufactured April 7, 2014, to November 18, 2014, certain 2015 Golf and GTI vehicles manufactured July 1, 2014, to November 20, 2014, and certain 2014-2015 Beetle and Beetle Convertible vehicles manufactured March 31, 2014, to November 27, 2014. A sealing cap at the fuel rail may fail, allowing fuel to leak into the engine compartment. CONSEQUENCE: A fuel leak, in the presence of an ignition source, can result in a vehicle fire. REMEDY: Volkswagen will notify owners, and dealers will replace the fuel rails with new parts, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Volkswagen customer service at 1-800-822-8987. Volkswagen's number for this recall is 24Bi.

Next VW GTI to get 10-speed dual-clutch gearbox

Following on Volkswagen's official announcement that it was working on a ten-speed, dual-clutch transmission, Auto Express has it on "good authority" that the new transmission will end up in the next GTI, GTD and Golf R. The brand's current seven-speed will be retained for lesser eight-generation Golfs. While the new gearbox won't be limited to just the higher-end Golf range, the new hatchback, expected in 2017, will be the first to get it, Auto Express reports. The new DSG is the same size as the Volkswagen Group's seven-speed dual-clutch, and will easily fit into VAG's MQB platform, so we should expect it to filter into the rest of the Group's vehicles, much like the seven-speed 'box has. The ten-speed is likely to see applications beyond even the small cars of the MQB platform. The gearbox can handle 405 pound-feet of torque, according to AE, making its application in larger offerings such as the gas-powered MLB cars and crossovers a likelihood. Beyond the new gearbox, Volkswagen is also toying with mild-hybrid tech for the standard Golf and better batteries for the e-Golf. As we said, expect the new Golf to arrive in European markets in 2017, with the current Euro-market Golf getting updated next year. As for the US, we wouldn't be surprised if VW followed the trail blazed by the Mark 7, with a North American arrival for the eight-gem Golf slated for a year or so after sales in Europe begin.