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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.

597-hp Audi RS7 Performance coming to US

The Audi RS6 Avant and RS7 Sportback certainly aren't hurting for power. Their 4.0-liter, twin-turbo V8s offer mountains of muscle as tall as the Alps. However, the engineers at the Four Rings are pushing those peaks just even higher for the new Performance versions of the pair. Tweaks to the engine management, bring horsepower up to 597 ponies and 516 lb-ft of torque. Temporary overboost can take the twist to 553 lb-ft, though. This high-performance duo can haul passengers with aplomb by hitting 62 miles per hour in 3.7 seconds – two tenths quicker than a regular RS. Even more impressive, the 12.1-second run to 124 mph also takes 1.4 seconds less than the standard version. Top speed remains the same 155 mph, but the optional Dynamic Package takes off the limiter to let the RS6 reach 174 mph and the RS7 go 189.5 mph. The eight-speed tiptronic remains from the standard RS versions, and it routes power through the Quattro all-wheel drive system with a 40:60 front-rear split. An optional sport differential at the back can also provide some extra assistance. Both Performance models come standard with an adaptive air suspension, but for those willing to spend a little more a stiffer RS sport suspension plus with Dynamic Ride Control is available, as well. The Performance pair launches in Germany at the beginning of November, but there's reason to get excited in the US, too. Audi spokesperson Mark Dahncke confirms to Autoblog that the RS7 Performance is coming here. More details about it should arrive around the Los Angeles Auto Show, he said. Related Video: Plus performance: the new Audi RS 6 Avant performance and RS 7 Sportback performance 4.0 TFSI now with 445 kW (605 hp) and up to 750 Nm (553.2 lb-ft) Like a supercar: from 0 to 100 km/h (62.1 mph) in 3.7 seconds New model designation hones brand's sporty profile Even more performance coupled with outstanding efficiency – that is what is behind the new "performance" model designation at Audi. The Audi RS 6 Avant performance* and Audi RS 7 Sportback performance* further hone the brand's sporty profile. Their 4.0 TFSI engine with 445 kW (605 hp) and up to 750 Nm (553.2 lb ft) of torque push acceleration (3.7 seconds) nearly to levels usually reserved for supercars. Fuel consumption remains unchanged at 9.6 and 9.5 liters per 100 kilometers (24.5 and 24.8 US mpg), respectively, corresponding to 223 and 221 g CO2 per km (358.9 and 355.7 g/mi). These are best-in-segment figures.

Evo drives the Audi R18 E-Tron Quattro on track

Audi invited Evo scribe Richard Meaden to the Misano circuit in Italy to drive the Audi R18 E-Tron Quattro - and not just any R18 Quattro, were such a thing possible, but the No. 2 car that took first place at Le Mans this year driven by Marcel Fassler, Andre Lotterer and Benoit Treluyer. Meaden got just four laps in the diesel hybrid racecar - a warm-up, two hot laps and a cool down lap - so this wasn't about testing the R18 E-Tron's limits. In fact, Meaden makes it clear that such a thing isn't even possible for less than a professional driver; when driving at his limits (admittedly in Audi's very expensive car being watched by dozens of Audi engineer eyeballs), the data showed he was using 60 percent of the pedal effort of the professionals. Nevertheless, Meaden does have a lot to say about how the car delivers its massive ability, and with the wide-view shot of the cockpit we also get to see how busy and how intimate an endurance driver's office is. Check it out in the video above. News Source: Evo via YouTube Green Audi Racing Vehicles Videos evo