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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.

2016 Audi TTS Roadster opens up for all to see

The five-door Sportback concept may be garnering the lion's share of attention as far as the TT goes, but that's just for show. The more tangible news from Audi's stylish sports car range at the
this year is the Roadster.
Like its predecessors, the new Audi TT Roadster ditches the coupe's fixed roof and rear seats in favor of an open two-seat cockpit with a traditional folding fabric enclosure that's quieter and lighter than the previous TT's mechanism.

The new Audi A8 moves upmarket and gains artificial intelligence

Audi is moving its largest sedan further up the luxury scale with the latest version of the A8. As Audi's flagship, the A8 naturally gets the best and newest technologies that the brand has to offer, including a range of mild-hybrid powertrains, a 48-volt electrical system, standard Quattro all-wheel drive, a lavish lounge-inspired interior, and automated driving systems. Two wheelbase lengths will be offered, the A8L getting a 5.1-inch stretch over the standard A8. The A8 also sets the style direction that the rest of Audi's lineup will emulate. While some of Audi's competitors will likely take umbrage at the claim that the A8 is "the first production automobile in the world to have been developed for highly automated driving," there are some new technologies for self-driving employed by Audi's flagship. At speeds of up to 37.3 miles per hour, the Audi AI traffic jam pilot takes control of starting, accelerating, steering and braking duties, allowing the driver to perform other tasks not related to driving... like watching the on-board TV, says Audi. Audi AI technology brings artificial intelligence to the A8. The AI system will presumably learn the driver's habits, likes, dislikes, and regular routes, and will make recommendations based on all that data. The Audi AI remote parking pilot and the Audi AI remote garage pilot perform exactly what you think based on their names, and the driver doesn't have to be in the car to make them work using a smartphone app. The 48-volt electrical system also exerts control over the A8's suspension. Not only can the system raise and lower each of the car's four wheels independently, it can position the A8 in a way to improve safety in an accident. Four-wheel steering with a variable ratio up front should make the big sedan stable at high speed and maneuverable at low speeds. Five engines will eventually be available in Audi's home market of Germany, and we'd assume some of those will come Stateside as well. Two 3.0-liter V6 engines – one gas and one diesel – will be optional at production time. The gas version puts out 340 horsepower. A gasoline-fed V8 will follow shortly thereafter with 460 horsepower, and a range-topping W12 will eventually be available with 585 horses. A belt alternator starter system is standard across the line. Later, an A8 L e-tron Quattro plug-in hybrid will hit the road with 449 total horsepower, 31.1 miles of electric range and a cool inductive wireless charging system.