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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.

Volkswagen plans expansion, tech center in Chattanooga

Volkswagen is expanding its growing Chattanooga, TN, factory by even more than the original plans after winning the local government's approval. The German automaker announced its intention last year to invest $900 million to add 538,000 square feet of floor space to the plant, which would add 2,000 new jobs. The company just went back to the city for permission to increase the expansion by a further 130,153 square feet for an even larger body shop. The extra construction is estimated to cost around $18 million. VW spokesperson Catharina Mette described the decision as "a cost-saving option," to Autoblog. "Taking this action now saves money while giving us flexibility as we integrate the MQB platform in the future," she said. By the end of 2016, the Chattanooga plant will begin production of VW's forthcoming crossover, which should look similar to the Cross Coupe GTE concept. VW has further plans for the research, development, and planning center near the factory. According to the Chattanooga Times Free Press, some of the designers and engineers will start work at a temporary facility there next week. A permanent location will open in 2017 with a test track and space to perform crash evaluations. The engineering center is meant to speed up the rate of vehicle development to bring models to the North American market more quickly."This will be the central entity in all the US, and hopefully all of North America," Matthias Erb, who oversees the center, said to the newspaper. Related Video:

Recharge Wrap-up: Smart Ready for Rent, MOIA comes to US in 2018

Daimler is launching its "Smart Ready to Rent" service in Europe. Beginning this month in German and French cities, the rental scheme bridges the gap between short-term Car2go rentals and longer leases. Customers book the Smart model of their choice – including the emissions-free Electric Drive and the hotter Brabus versions – for a period of one day up to three months. As such, Smart Ready to Rent is useful to those who live outside of an urban center. Users can book a car online or through a dealer, and vehicles are collected and returned at the dealership. Read more at Green Car Congress. Volkswagen will launch its MOIA mobility arm in the US in 2018. The recently announced brand will take on public transportation as a competitor with services such as ride hailing and car sharing. VW is looking into forging partnerships with the likes of technology and ride sharing companies. The automaker also expects to show an electric shuttle-type concept in 2017 for pooling services, but will use the three-row VW Atlas crossover in the meantime until that concept reaches production. Look to see MOIA emerging in major cities along the US coasts. Read more at Automotive News. A new report from Lux Research suggests that most EV batteries are better off being recycled than reused. Once lithium-ion batteries have outlived their usefulness for automotive duty, some automakers (BMW, Nissan, and Toyota included) are looking at ways to use their remaining capacity, such as for stationary energy storage. The new report, though, says that reusing batteries offers "questionable returns on account of reduced performance." Better to be like Tesla, and just recycle them. Read more at Hybrid Cars. Related Gallery Smart ForTwo ED: Paris 2016 View 12 Photos Related Gallery 2018 Volkswagen Atlas Unveiling View 43 Photos News Source: Green Car Congress, Automotive News, Hybrid CarsImage Credit: Copyright 2016 Drew Phillips / AOL Green smart Volkswagen Green Automakers Transportation Alternatives Electric recharge wrapup