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Next-gen Audi RS4 coming, might make it to America

Let us be frank: The second-generation Audi RS4 was one of the best, most exciting cars of the past decade. A four-door sedan with a 4.2-liter V8, all-wheel drive, and a six-speed manual transmission? What wasn't to like? While you can still get a taste of the B7 RS4's character with the current RS5, it isn't quite the same. That's why we're giddy about a new report from Car and Driver, which claims that not only is a new RS4 on the way, but that it could, maybe, possibly return to the United States. As previously reported, the fourth-generation RS4 will go back to a twin-turbocharged V6, after two generations of unassisted V8s under the hood. As per RS4 tradition, it will also be limited to a five-door Avant body style, because "that is what people expect from the RS4," Quattro GmbH boss Heinz Hollerweger told Car and Driver. An RS5 Sportback could also be in the offing, which might remain more true to the character of the first US-market RS4. The US question, though, remains an iffy one, largely because of the Avant shape. Audi has reduced the number of wagons it's offered in the US over the years, dropping the A4 and A6 Avant, although the former is sort of still offered in the form of the Allroad. But that position might be enough to keep the next-gen RS4 off our shores, although as the Quattro boss told CD the US market is changing and "there is more demand there [for wagons], so maybe that will change." Well, Herr Hollerweger, we're here to tell you that America loves wagons, and that you should put the next-gen RS4 on sale over here post haste. Danke.

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.

BMW says SUVs killed the sports car market

In many ways, we're living in a golden age of automotive performance. After all, it's possible to show up at a Dodge dealer, hand over about $60,000 and storm away with a 707-horsepower Challenger Hellcat. Or for those who prefer a touch more luxury, the BMW M4, Mercedes-AMG C63 and latest Cadillac ATS-V offer between 425 and 503 horsepower, depending on your pick, with a bit more poshness. However, none of these powerful vehicles fit the classic definition of a two-place, droptop sports car, and according BMW head of sales Ian Robertson, that's because the segment is very much in the doldrums.
According to Robertson, two factors seriously wounded the classic sports car market. First, the global economic crisis of a few years ago put a serious hurt on sales, according to Bloomberg. Further worsening the situation, the boom in popularity of luxury SUVs and crossovers in the past few years hasn't allowed for much recovery. Even car-hungry China hasn't helped much because of the smog in many cities and preference among some of the very rich there to be chauffeured.
Combined, Audi TT, BMW Z4 and Mercedes-Benz SLK sales peaked around 114,000 units a year in 2007, but they are only expected to reach 72,000 annually by the end of the decade. Robertson is pretty pessimistic about the market's comeback too. "Post-2008, it just collapsed. I'm not so sure it'll ever fully recover," he said to Bloomberg.