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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.

The 2016 Honda Civic desperately needs the cool kids

"... I am contagious, I am breaking down ..." Oh, that's the song. The 2016 Honda Civic's launch party was just so achingly cool. Honda showed off its 10th-generation Civic Sedan Wednesday at YouTube Space LA, and livestreamed it for the world to see. I was standing across from a band whose song I knew but name I didn't (turns out it was Night Riots), and near people in knit caps and tattoos cheering them on. Honda is stoked on this epic new Civic, guys. This all sounds like another cynical marketing attempt to capture the attention of people my age. The ones studies suggest hate driving and have no interest in cars, according to old people and their old muscle cars. Last year, Audi released a whole guide on how to sell the A3 to Millennials. We do love our aggressively targeted campaigns. It's like the Civic became what your Aunt Hattie replaced her '93 Achieva with. In fairness, the 2016 Civic has a hell of a lot riding on its more chiseled shoulders. The Civic long had a following among new, young buyers looking for their first new car, who then just kept buying them because they loved them so much. That sort of fell apart with the ninth-generation Civic, a car so removed from its ancestry in terms of feel, looks, and overall spirit. It's like the Honda Civic became what your Aunt Hattie replaced her '93 Achieva with. It's shown in the sales figures. In 2014, the Accord became Honda's car with the most buyers under the age of 35. The HR-V and CR-V SUVs also represent more of what buyers want these days, with rugged looks and available all-wheel drive. It's no cakewalk for the Civic anymore. Clear past the clutter of the band and the fog of the reveal, and the 2016 Civic already looks like it has the things young new-car buyers look for when they go shopping. Show-car styling, the promise of good fuel economy, Android Auto and Apple CarPlay, and lots and lots of features. The first of the new Civics Honda showed touts technology, refinement, and content more than the fun-to-drive characteristics. Enthusiasts may not find much comfort in the fact you can only get Honda's new 1.5-liter turbo on models equipped with a CVT, now that the six-speed manual has really been relegated to the base LX. But then you were probably waiting for the forthcoming Si, or next year's hatchback model, or probably the new Type-R. The Civic sedan targets the mainstream, and this time, the mainstream is the under-35 crowd.

Acura organizes new business division to confront falling sedan sales

Honda and Acura North America have announced a major restructuring of operations in hopes of turning around Acura's flagging business. For 2013, sales for Acura's sedans dropped 10.4 percent, while its CUV sales grew by 21 percent. The newly formed Acura Business Planning Office will attempt to right the ship.
As part of the restructuring, Acura is promoting Erik Berkman from President of Honda R&D Americas to lead a new division called the Acura Business Planning Office. Berkman has been with Honda since 1982 and led development of the 2006 Accord. He was also the first US engineer to head North American research and development and has been head of Honda Performance Development since 2008. "Erik's appointment to the new Acura Business Planning Office is a clear indication of the high priority we place on Acura," said Honda spokesperson Jeffrey Smith to Automotive News.
American Honda Motor President and CEO Tetsuo Iwamura is also going to be working to improve the business. He has been elected chairman of American Honda's board, and has simultaneously taken the new position of Corporate Brand Officer to improve the management of the company's brands.