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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.

First impressions of Audi's next TT interior and Virtual Cockpit [w/video]

Not content to pummel CES show goers with laser lights and self-piloting vehicles, Audi has also pulled the wraps (well, some of the wraps) off the interior of its upcoming next-gen TT. While the car itself wasn't on hand for us to check out, Audi did mock up the cockpit, complete with its all-new Virtual Cockpit central display and the latest iteration of the company's Multi Media Interface (MMI).
Virtual Display is Audi's new brand name for a completely digital reinterpretation of the instrument binnacle, by way of a 12.3-inch TFT screen. Audi tells us that there are two operable modes for Virtual Display: in the standard mode, an average-sized tachometer and speedometer flank a smaller infotainment portion in the center. Infotainment mode, meanwhile, shrinks the gauges to discreet circles and allows the navigation map, audio controls, or whichever system is being operated by the driver, to fill the remaining screen real estate.
This design, says Audi, allowed engineers to slim down the size of the center console as a whole, without reducing function for the driver. We can say that it looks very impressive as a demonstrator, but we will need some time with it in a moving vehicle before we're convinced it isn't slightly more distracting that a traditional setup.

166 MPGe diesel-electric Audi Q7 E-Tron Quattro gets real in Geneva

Despite some warnings that plug-in vehicles would not make a big impression in Geneva this year, the first big reveals from the Peace Capital are indeed PHEVs. For example, the diesel-electric Audi Q7 E-Tron Quattro, which right out of the gate comes at us with some impressive numbers: an all-electric range of 34 miles and the "potential" to hit 166 miles per gallon equivalent. Whatever scale Audi is rating the new Q7 PHEV on, 166 MPGe is a resounding success. As we might guess from the prototypes we've seen and hints we've had, the Q7 E-Tron Quattro is not some auto salon fantasy. The vehicle will go on sale at the end of this year, in the UK, at least. Availability in the rest of Europe and here in the US is likely but unspecified in the press materials we've seen so far. The real-world reality of the Q7 E-Tron Quattro means that specs like a 0-100 kilometers an hour (62 miles per hour) time of six seconds and a top speed of 225 kmh (139.8 mph), CO2 emissions of under 50 grams per kilometer and a total system torque output of 516.3 pound-feet should be ours to test in the not-too-distant future. This whole E-Tron program is turning out to be quite something. Who else is ready? Related Video: AUDI Q7 ENTERS THE VOLT AGE IN GENEVA WITH NEW SUB 50 G/KM Q7 E-TRON QUATTRO 02/03/15 Commanding new Q7 incorporates hybrid drive for a combined 876-mile range and 166mpg potential First diesel plug-in hybrid with quattro drive in its segment First ever plug-in hybrid TDI from Audi Six-cylinder TDI engine develops 373 PS Electric-only range of up to 34 miles, increasing to 876 miles combined Fully charged in two and half hours Maximum efficiency with hybrid management UK ordering expected to open at the end of 2015 Ingolstadt/Geneva, March 2, 2015 - Audi has combined its world renowned diesel engine expertise with its equally widely acclaimed flair for technological innovation to create its first TDI plug-in hybrid with quattro all-wheel drive. Making its world public debut at the Geneva Motor Show, the new Q7 e-tron quattro combines a frugal TDI engine with lithium-ion battery technology for a potential range of up to 876 miles and the ability to travel emission-free for over 34 miles on electric power alone, contributing to an official CO2 figure of less than 50 grams per kilometre. The Q7 e-tron quattro is the second Audi model with a powerful plug-in hybrid drive system.