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Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

VW CEO lost his job over buggy software that delayed new models

It says a lot about the state of the auto industry and where it's going that software problems have cost the CEO of a carmaker his job. Volkswagen ousted Herbert Diess as chief executive officer after severe software-development delays set back the scheduled launch of new Porsches, Audis and Bentleys. This was untenable considering buggy software postponed the debut of VW’s initial rollout of ID models, and customers are still having to drop off their cars at the dealer for updates the company has struggled to make over the air. Sure, Diess also didnÂ’t do enough to make allies and became increasingly isolated due to his hard-nosed leadership style. In his push to transform the company into an electric-vehicle leader, he repeatedly clashed with labor leaders by warning VW was losing out to Tesla and needed to cut thousands of jobs. But failures at the carmakerÂ’s software unit Cariad ultimately eroded DiessÂ’s support from the powerful Porsche and Piech family that calls the shots. Back in December, VW overhauled its management board, stripping Diess of some responsibilities while tasking him to turn around Cariad. While thereÂ’s been a lot of re-arranging since then, Diess didnÂ’t manage to make the issues go away. Discord at Cariad has pushed back the rollout of important new models including the electric Porsche Macan, a high-volume sport utility vehicle for the division thatÂ’s planning an initial public offering in the fourth quarter. AudiÂ’s new line of Artemis EVs has been delayed by around two years to 2027. And VWÂ’s ultra-luxury brand Bentley may not be able to go all-electric by the end of this decade as planned because of the software issues, Automobilwoche reported earlier this month. “Taking over the ship at Cariad seems to have been DiessÂ’s downfall,” said Matthias Schmidt, an independent auto analyst based in Berlin. VWÂ’s solutions to challenges tend to reflect its status as an industrial behemoth: itÂ’s able to throw lots of money and people at its problems. But modernizing the company for the digital age is going to take bringing in talent and building skillsets outside its traditional zones of expertise. Drivers increasingly demand intuitive user interfaces and services that could create new revenue streams, if done correctly. “Software is the key to the future,” TeslaÂ’s Elon Musk tweeted when one of his followers asked about VW switching CEOs. Diess certainly didnÂ’t lack ambition.

Audi reveals 'rightsized' 2.0 TFSI engine for next A4

Downsizing engines is a trend sweeping the industry. It's not a new thing, and downsizing helps automakers cut fuel consumption and emissions while employing techniques like turbocharging and direct injection. Audi, however, is taking a different approach with its latest engine. Revealed at the Vienna Motor Symposium in Austria is Audi's newest trick powertrain. Where others are going with smaller engines, Ingolstadt's latest displaces a nice round 2.0 liters, employing a shorter intake time to use less fuel. It's sort of like the Miller cycle that Mazda brought to market on the old Millenia, only turbocharged (instead of supercharged) and brought up to date. Audi calls the four-pot "rightsized," producing 190 horsepower and 236 pound-feet of torque across a broad rev range, while getting 47 miles to the gallon – and that's on the US cycle, which is tougher than the European standard a company like Audi would usually quote. In short, it's designed to provide power where needed but only sip at the fuel tank when it's not, but the geekiest among us will want to delve into all the intricacies outlined in the announcement below. The engine is set to power the next-generation A4 before being rolled out in additional models in the future. Ingolstadt/Vienna, 2015-05-07 World premiere at the Vienna Motor Symposium: new high-efficiency engine from Audi - New 2.0 TFSI four-cylinder engine with innovative combustion method - Top figures: 190 hp, 320 Nm (236.0 lb-ft), less than 5 l/100 km (47.0 US mpg) - To be implemented in the new Audi A4 by the end of 2015 - Prof. Dr. Ulrich Hackenberg: "A prime example of the Audi rightsizing strategy" Audi presents the most efficient two-liter gasoline engine in its class. The new 2.0 TFSI with 140 kW (190 hp) demonstrates the engine expertise of the brand – with a ground-breaking new combustion method. Audi will be using the engine for the first time in the next generation of the A4. Over ten years ago, Audi was the first manufacturer worldwide to bring the TFSI engine with turbocharging and direct injection into series production. This made the brand with the four rings the trendsetter in downsizing and downspeeding. "We're now taking a crucial step further with rightsizing," said Prof. Dr. Ulrich Hackenberg, Member of the Board of Management for Technical Development at AUDI AG.