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U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.

Audi CEO's Dieselgate arrest threatens fragile truce among VW stakeholders

FRANKFURT — The arrest and detention of Audi's chief executive forces Volkswagen Group's competing stakeholders to renegotiate the delicate balance of power that has helped keep Audi CEO Rupert Stadler in office. Volkswagen's directors are discussing how to run Audi, its most profitable division, following the arrest of the brand's long-time boss on Monday as part of Germany's investigations into the carmaker's emissions cheating scandal. The supervisory board of Audi, meanwhile, has suspended Stadler and appointed Dutchman Bram Schot as an interim replacement, a source familiar with the matter said on Tuesday. Schot joined the Volkswagen Group in 2011 after having worked as president and CEO of Mercedes-Benz Italia. He has been Audi's board member for sales and marketing since last September. The discussions risk reigniting tensions among VW's controlling Piech and Porsche families, its powerful labor representatives and its home region of Lower Saxony. VW has insisted the development of illegal software, also known as "defeat devices," installed in millions of cars was the work of low-level employees, and that no management board members were involved. U.S. prosecutors have challenged this by indicting VW's former chief executive Martin Winterkorn. Stadler's arrest raises further questions. Audi and VW said on Monday that Stadler was presumed innocent unless proved otherwise. Munich prosecutors detained Stadler to prevent him from obstructing a probe into Audi's emissions cheating, they said on Monday. Stadler is being investigated for suspected fraud and false advertising. Here are the main factors deciding the fate of Audi. Background: Audi's role in Dieselgate Volkswagen Group was plunged into crisis in 2015 after U.S. regulators found Europe's biggest carmaker had equipped cars with software to cheat emissions tests on diesel engines. The technique of using software to detect a pollution test procedure, and to increase the effectiveness of emissions filters to mask pollution levels only during tests, was first developed at Audi. "In designing the defeat device, VW engineers borrowed the original concept of the dual-mode, emissions cycle-beating software from Audi," VW said in its plea agreement with U.S. authorities in January 2017, in which the company agreed to pay a $4.3 billion fine to reach a settlement with U.S. regulators.

2022 Bentley Flying Spur Hybrid has pure electric range, near-V8 performance

Bentley is adding the new 2022 Flying Spur Hybrid as a third powertrain option in the Flying Spur family that already includes a W12 and V8 model. It’s BentleyÂ’s second hybrid vehicle, joining the Bentayga Hybrid in the companyÂ’s rollout of slightly greener vehicles. This Flying Spur PHEV is the result of borrowing powertrain components from Porsche for its powertrain components. A 2.9-liter twin-turbo V6 and electric motor combine for a total system output of 536 horsepower and 553 pound-feet of torque. The horsepower is slightly down from the Panamera 4S E-Hybrid, but its 553 pound-feet of torque is identical to the Porsche from which its powertrain is derived from. This motivates the Flying Spur Hybrid from 0-60 mph in just 4.1 seconds, which is just 0.1 second slower than the V8. Top speed is an impressive 177 mph. ThereÂ’s nothing slow about it. As for the electrics, Bentley is using a 14.1 kWh battery pack. Tested on the optimistic WLTP test cycle, Bentley predicts itÂ’ll have a range rating greater than 25 miles. The Porsche Panamera 4 E-Hybrid with the same size battery pack (2020 model, because the 2021 Panamera got a bigger battery pack) is EPA-rated for 14 miles on a full charge, so we suspect the Flying Spur will be closer to this total when it receives its EPA rating. YouÂ’ll be able to choose between pure EV mode, Hybrid Mode or Hold Mode (retains current battery charge) depending on how you wish to utilize the battery charge on your drive. A new dedicated button on the interior facilitates these mode changes, and besides the necessary hybrid-specific infotainment software and cluster layout, is the only physical change to the interior. Hybrid models will be recognizable via their small “Hybrid” badge on the front fender. TheyÂ’ll also have new quad oval tailpipes and a charging port on the left rear fender. Fuel economy figures are not yet available from Bentley, but if the Panamera it shares powertrains with is any indication, we may not see massive gains by going from the V8 to the V6 hybrid. Porsche gains only 1 mpg going from the Turbo to a 4S E-Hybrid, so a similar 1- or 2-mpg bump from the V8Â’s 17 mpg combined figure seems likely. A total driving range of 435 miles is expected with this Hybrid model, which Bentley claims is the best in its lineup. Pricing isnÂ’t out yet, but Bentley says youÂ’ll be able to place an order for a Flying Spur Hybrid this summer. The first customer deliveries are scheduled for the end of 2021.