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Trump turns his unpredictable ire towards German carmakers

President-elect Donald Trump likes to be unpredictable. During the election, he used the phrase in reference to foreign policy and dealing with terrorism. But he's using the same tactic with the automotive industry, making broad statements that send manufacturers into emergency-response mode. The latest salvo comes from an interview with Germany's Bild, where Trump threatened a 35-percent import tax on German manufacturers. ( Reuters covers the highlights in English here.) "If you want to build cars in the world, then I wish you all the best. You can build cars for the United States, but for every car that comes to the USA, you will pay 35 percent tax," Trump said. Trump's comments seem to be directed at manufacturing in Mexico, although it's unclear if the comments refer to any import from a German automaker or just those from south of the border. BMW is building a $1-billion plant in San Luis Potosi, Mexico, where it plans to assemble the 3 Series. Mercedes-Benz is joining up with Nissan to build a new facility in Aguascalientes near the Japanese company's existing factory. And Volkswagen recently expanded its massive footprint in Puebla to build the new Tiguan as well as a separate factory for the Audi Q5. Reuters states that Trump thinks there's not enough reciprocity between Germany and the United States, as Germans don't buy Chevrolets at the rate American buy Mercedes-Benz Vehicles. At present, only the Corvette and Camaro are sold in Germany. The German subsidiary of Chevrolet parent General Motors, Opel, is the fifth-ranked automaker in the European Union, ahead of FCA but trailing Ford, VW, and both French auto companies. In response to Trump, Germany's deputy chancellor (Chancellor Angela Merkel is shown above) and minister for the economy, Sigmar Gabriel, did not mince words. As reported by The Guardian, Gabriel said "The US car industry would have a bad awakening if all the supply parts that aren't being built in the US were to suddenly come with a 35% tariff. I believe it would make the US car industry weaker, worse and above all more expensive." Asked what it would take for Germans to buy more American vehicles, he said "Build better cars." Gabiel also noted that BMW's largest plant is already in the US. The Spartanburg, SC plant exports about 65 percent of its 400,000-unit annual production to foreign markets and directly employs 8,000 workers according to BMW.

Audi changes the guard at Quattro GmbH

Although it may not have the brand recognition that Mercedes-AMG does or BMW's M division, Audi's Quattro GmbH department is responsible for its most exciting products - including the RS line of performance models and the R8 supercar. For the past year and a half, Quattro GmbH has been led by Franciscus van Meel, but soon it will get a new leader.
According to reports, van Meel (46, pictured right) is being reassigned to head up the Audi R&D center in Beijing. In his place, Audi is promoting Heinz Peter Hollwerweger (60, pictured above) to the post. The move is expected to be confirmed in advance of the Geneva Motor Show, at which point we can expect Audi to claim that it was part of a planned rotation. However sources suggest that van Meel's departure came at the behest of R&D boss Ulrich Hackenberg, who was apparently unhappy with how van Meel has been handling development of the next R8 and of the R8 E-Tron project.
Why Hackenberg would have van Meel reassigned to run one of his own R&D centers is beyond us, but Hollerweger is apparently expected to be able to get the job done faster and better. Whether he'll have any major changes in store for the Quattro division and its products is another matter, but we're looking forward to finding out.

Audi reveals S3 Cabriolet ahead of Geneva debut

It used to be if you wanted an Audi S3, your choices in bodystyle came down to hatchback or... hatchback. That is, in markets where the model was offered at all. But Audi has been expanding the A3 global family upon which the S3 is based, and it intends to offer the performance-minded derivative as a three-door hatch, five-door hatch, four-door sedan and - with the introduction of the version you see here - a two-door convertible.
Set to be presented in public for the first time at the Geneva Motor Show early next month, the new Audi S3 Cabriolet packs the same 2.0-liter turbo four as its fixed-roof counterparts - all 290 horsepower and 280 pound-feet of it - but ditches the extra doors and the tin top in favor of the two-door cabriolet bodystyle of the A3 Cabriolet.
The added weight of the folding fabric roof mechanism and the extra body reinforcement required means that the S3 cabrio takes half a second more to reach 62 miles per hour from a standstill than it would take the sedan version, clocking the run at 5.4 seconds instead of 4.9. This, despite more generous use of magnesium, aluminum and high-strength steel in its construction. Top speed, as is the German custom, remains pinned at 155 mph.