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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.

Audi calls R18 E-Tron Quattro its 'most complex race car'

Technically speaking, Audi's R18 E-Tron Quattro is quite technical. The German automaker says the diesel-hybrid is the "most complex race car" it's ever created. And we'll take their word for it. The Audi, which pairs a V6 turbodiesel powering the rear wheels with two electric motors, is all about connectivity, giving the car's crew the opportunity to constantly monitor the vehicle while it's racing. The car sends in a host of data each lap to the crew's computers, and the vehicle's telemetry system constantly keeps tabs on things like hybrid energy levels, cockpit temperature and boost-pressure levels. In all, the amount of data parameters is more than 100 times greater than in 1989, when Audi first tested a race car equipped with automatic data transmission capabilities. Audi first released specs on the updated version of the R18 E-Tron Quattro late last year, trumpeting the vehicle's advantages in competing in the LMP1 class of the 2014 World Endurance Championship (WEC). Audi made the car a little narrower and a little taller and it complies with a new WEC regulation requiring the front end set off by a new wing. Take a look at Audi's most recent press release below. AUDI R18 E-TRON QUATTRO WITH COMPLEX ELECTRONIC ARCHITECTURE • Telemetry connection between race car and pit lane • Permanent acquisition of far more than 1,000 parameters • Various electronic control units interlinked by a multitude of CAN Bus systems Ingolstadt, May 5, 2014 – The Audi R18 e-tron quattro is the most complex race car created in Ingolstadt and Neckarsulm to date. This not only applies to the mechanics. The electronics of the most recent LMP1 race car with the four rings is more sophisticated than ever before. The age of electronic data transmission from the race car on track began for Audi in 1989. At that time, an Audi 90 quattro in the IMSA GTO series radioed eight parameters to the garage where engine speeds and a few pressures and temperatures were plotted on printouts – a tiny step from today's perspective, but one that provided important insights at the time. Today, an Audi R18 e-tron quattro on more than a thousand channels, in cycles that in some cases only amount to milliseconds, generates data of crucial importance to a staff of engineers at Audi Sport. At Le Mans, the engineers constantly monitor their race cars for 24 hours.

Audi R8 Exclusive Edition gets laser beam headlights

We've long lamented the National Highway Traffic Safety Administration's draconian Federal Motor Vehicle Safety Standards, which contrary to their name, have actually prevented automakers from selling some substantial and important safety equipment, like advanced headlights, in the US market. Until now, apparently. To be fair, we've known Audi was prepping its advanced laser headlights for the US market, but that doesn't make their arrival any less exciting. Audi will begin offering DOT-approved high-beams that use advanced laser diodes on a limited run of V10-powered R8s. Exclusive to the, um, Exclusive Edition R8, the advanced lamps complement the standard LED low beams and dynamic front turn signals, offering "very bright and pure white light" for 25 lucky consumers. Here's some more techno babble about how the lights work – according to Audi's official release, there's a laser module in each headlight containing four high intensity laser diodes that fire out blue lasers. Then, a phosphor converter adjusts the 450-nanometer laser into visible light that fires up above 40 miles per hour. "When conditions permit," Audi's release reads, the laser high beams "greatly enhance visibility for the driver by projecting a low and wide beam of light on the road ahead." Naturally, we have questions, but Audi wasn't keen on releasing much info ahead of the R8 Exclusive Edition's Los Angeles Auto Show debut. The company confirmed that the new lights are DOT approved, which makes sense considering the LA introduction. We're also wondering how Audi's new Laser Lights differ from BMW's similarly named Laserlight system, offered on the i8. Both setups use lasers to replace conventional high beams, but BMW says it "adjusted to the maximum allowable light output for the US market." Audi was cagey about explaining if it modified the system to satisfy the feds. Ingolstadt also offered the typical "we don't comment on future product" when asked about future applications for its laser headlight technology. Beyond the advanced high-beam headlights, the R8 Exclusive Edition comes standard with Quantum Grey paint, 20-inch "Y Design" wheels, a carbon-fiber side blade with an orange stripe, and a whole bunch of interior trim upgrades, like full leather upholstery and Alcantara trim. Price start at $229,200, not counting $1,250 in destination charges. We'll have more on the R8 and its laser lamps when it debuts in a couple weeks. Related Video: