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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.

BMW calling in 76k vehicles over airbag issues

Vehicles these days are typically fitted with a mat in the front passenger seat that determines whether that airbag needs to be activated in the event of a collision and how it should deploy. But that system doesn't always work, as Mercedes recently found in its SL-Class roadster and as Suzuki did before it with the Grand Vitara and SX4 crossovers. Now a crop of BMW vehicles have befallen the same issue, prompting the Bavarian automaker to cooperate with the National Highway Traffic Safety Administration to issue a recall for the vehicles in question.
The problem affects precisely 76,565 vehicles, including certain the 3 Series (sedan and wagon), 5 Series, 7 Series and X5 crossover families spanning the 2006 and 2007 model years and fitted with a certain type of seat. However, since the parts to repair the problematic components are not currently available, as you can see from the recall notice below, it won't be until March 2014 when local dealers will be able to resolve the issue.

Toyota, Mercedes, BMW top automakers included in List of Best Global Brands

Interbrand, a consultancy firm, has published its 13th annual list of the best global brands. Besides seeing some shakeups at the top - Apple and Google unseated Coca-Cola (a company that has dominated the survey since its birth), the 100-item list features 14 automakers, most of which enjoyed double-digit gains in brand value.
Toyota managed to retain its spot as the study's top automaker. It finished the survey in 10th position overall (the same as last year), despite a 17-percent improvement in its brand value, from $29.33 billion to $35.34 billion. Mercedes-Benz, BMW and Honda all made the top 20, at 11th, 12th and 20th place, respectively. Hopping a ways down the list, we come across Volkswagen in 34th place, up from 39th in last year's study, with a brand value of $11.12 billion, a 20-percent improvement over 2012. Ford and Hyundai round out the automakers in the top 50, at 42 and 43.
Porsche made the largest year-over-year gain of any automaker, with its brand value increasing 26 percent to $6.47 billion. Chevrolet meanwhile, cracks the list for the very first time at 89th place. As Interbrand notes, Chevy's inclusion is notable because of the sheer number of vehicles it moves for General Motors and its recent push in developing markets. The final interesting note on this survey is the position of an automaker that takes its name and logo more seriously than perhaps any other - Ferrari. The Italian exotic manufacturer finished 98th out of 100, with just $4.01 billion in brand value, a six-percent improvement over 2012.