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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 Prologue concept goes for A9, we give it a ten

If you've been waiting for Audi to roll out a new design language, you need wait no longer as Ingolstadt is displaying just that at the Los Angeles Auto Show this year with the Prologue concept you see here.
Penned by Audi's new design chief Marc Lichte, the Prologue is earmarked to introduce a shift (if not quite a complete change) in design direction for the German automaker. The trapezoidal grille sits wider and lower than on existing models, with the wedge-shaped laser headlights positioned higher above new air intakes with blade elements. The profile rests balanced across its wheelbase to visually emphasize the all-wheel drive that is part of Audi's DNA, with flared arches inspired by the legendary Ur-Quattro. The rear section is inspired by yachts, angled forward to suggest motion, with a narrow strip of LED taillights, full-width diffuser element and twin trapezoidal exhaust tips.
Inside it's all light and surgically clean, with a horizontal dashboard integrating four touchscreen displays running its full width. The system even allows the passenger to select the route for the navigation system and swipe it on over to the driver's display. The headrests on the rear seats and the "sound spoiler" on the rear shelf deploy only when needed, unobstructing the rear view when not.

2017 Audi Q7 Second Drive

One morning, I'm driving down the Malibu coast, top-down in a two-seat sports car. Twelve hours later, I'm on a straight road, in traffic, and piloting a seven-seat SUV. I think this is how new parents feel. There's no other word but "parental" to describe how three-row crossovers, like this 2017 Audi Q7, make me feel. Whether it was the Honda Pilot that was actually kind of tossable, or the plush Kia Sorento, one glance in the rear-view mirror at five headrests makes you wonder if someone isn't waiting for you outside an elementary school. The Q7, however, has always been a luxury car first. And this second-generation model is crammed with technology and convenience features to make life more effortless, as if it was designed for a person who lives in Bel Air but also must take the kids to horse-riding lessons on the one weekend it rains in Southern California. Autoblog already tested a European example, but I'm now getting the chance to finally drive it Stateside. When it comes to the Q7's appearance, I always seem to have a minority opinion. The old one looked like a bus when plenty of people said it looked beautiful. This new one has been widely criticized for looking like a wagon, but I don't see a lot wrong here. At some angles, it's reminiscent of the old 5000 Avants from the '80s – probably not a coincidence, since the Q7 is Audi's most prestigious wagon right now. Even Audi admits it pulled from the '80s with styling cues along the rear quarter panels and the ever-larger "Quattro" badges. While the shape grows on you, it isn't going to stop people seeing it and thinking it's a Q5. The new Audi Q7 has an incredible sense of elegance about it. The most ambitious design touches are the arrows in the LED lights, front and rear, but they're ultimately dwarfed by the size of the car. What's more, the string of white, silver, and gray cars on hand at our test aren't exactly striking, and the optional 20-inch wheels are boring in design. You could also call this "quiet luxury." Or perhaps stately. The new Audi Q7 has an incredible sense of elegance about it, never feeling ponderous like a truck and always feeling secure like a large luxury sedan. As the first application of the Volkswagen Group's MLB Evo platform, it really is a large luxury wagon. Which is the exact image the company seems to be running from.