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AC Schnitzer's hotrod BMW 318ti remembered by MotorWeek

There are plenty of compact luxury cars available in the US today, including the Audi A3, BMW 2 Series, and Mercedes-Benz CLA-Class. In the '90s, the BMW 318ti tried to offer a similar mix of luxury at a reasonable price, but it never quite found much success in America. The 318ti looked like an E36-generation 3 Series in front but featured a stumpy liftback at the rear. The only engine available in the US was a four-cylinder. If you had the money, though, the aftermarket was ready to give you more power and more aggressive looks. AC Schnitzer dropped a bored and stroked 3.0-liter inline-six under the hood to create a pocket-sized hot rod, and MotorWeek took it for a drive. The model in this video was the promo car for AC Schnitzer's US importer, and it had every upgrade possible to show off what the German tuner's produced. Under the hood, the company installed an upgraded engine with 241 horsepower and 228 pound-feet of torque. For comparison, a US-spec M3 of the era had 240 horsepower and either 225 or 236 lb-ft, depending on the model year. AC Schnitzer also sharpened the 318ti with a suspension overhaul and short shifter. According to MotorWeek's tests, the mods got the hatchback to 60 miles per hour in 6 seconds and gave 318ti laudable handling. So much performance wasn't cheap, though. The upgrades on the promo car cost more than twice as much as the 318ti's base price. Watch this Retro Review to find out the massive amount you needed to pay to get M3 performance in a tiny package. Related Video:

4 automakers agree to $553M settlement of Takata airbag claims

WASHINGTON (Reuters) - Four automakers agreed to a $553 million settlement to address class-action economic loss claims covering owners of nearly 16 million vehicles with potentially defective Takata airbag inflators, according to court documents filed on Thursday. Toyota's share of the settlement costs is $278.5 million, followed by BMW at $131 million, Mazda at $76 million and Subaru at $68 million. According to a press release from Plaintiffs' Committee for Takata Airbag Product Liability Litigation, the funds for the settlement are aimed at getting more cars with faulty airbags fixed. At the time of writing, Toyota had the greatest recall completion percentage of 31.89 percent followed by Subaru with 31.37 percent. Mazda has completed repairs on 18.16 percent of affected cars, and BMW brings up the rear with 16.48 percent completion. Some settlement funds will go to an outreach campaign to increase awareness, while other funds will be used to reimburse people for any costs accrued to get their cars fixed. These costs can include rental cars, child care, lost wages, or any other reasonable costs associated with bringing in a vehicle for repairs. Furthermore, a customer support program will be funded with settlement money to handle any additional repairs or adjustments that could become necessary in the 75,000 miles following the airbag replacement. Lawsuits against Honda, Ford and Nissan have not been settled, lawyers said. Takata inflators, which can explode with excessive force and unleash metal shrapnel inside cars and trucks, are blamed for at least 16 deaths and more than 180 injuries worldwide. The safety defect has prompted recalls worldwide of about 100 million inflators by more than a dozen major automakers. Reporting by David Shepardson, additional details by Autoblog's Joel StocksdaleRelated Video: Government/Legal BMW Mazda Subaru Toyota

Tesla in talks with BMW about batteries, charging collaborations

With Toyota and Daimler no longer holding Tesla shares, the electric vehicle company might be looking for a new partner – possibly a Bavarian one. In a new interview with Germany's Der Spiegel, CEO Elon Musk confirmed that he has had talks with BMW execs about future collaboration. "We are talking about whether we can collaborate in battery technology or charging stations," Musk said in the interview, according to Reuters. However, a Tesla spokesperson has tempered things by saying no formal agreements are in place at the moment. In the same interview, Musk reportedly praised BMW's use of carbon-fiber-reinforced plastic in its i sub-brand offerings, and said he would like to have a battery factory in Germany in the next five or six years. The possibility of technological cooperation between Tesla and BMW has been a hot topic this year. In June, Musk reportedly met with BMW execs, and the two companies were also rumored to have met with Nissan to discuss charging technology. When Daimler sold off its shares, there was talk of it opening the way for possible collaboration between the two automakers, as well.