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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.

Jaguar Land Rover to upgrade Castle Bromwich plant to build EVs

LONDON — Jaguar Land Rover is making a multi-million pound investment to build electric vehicles in Britain, in a major boost for the UK government and a sector hit by the slump in diesel sales and Brexit uncertainty. Britain's biggest car company, which built 30 percent of the UK's 1.5 million cars last year, will make a range of electrified vehicles at its Castle Bromwich plant in central England, beginning with its luxury saloon, the XJ. "The future of mobility is electric and, as a visionary British company, we are committed to making our next generation of zero-emission vehicles in the UK," Chief Executive Ralf Speth said on Friday. The announcement gives a boost to Britain's automotive sector hit this year by Honda and Ford's plans to close factories. Jaguar Land Rover (JLR) has highlighted the dangers of a no-deal Brexit and the need to maintain frictionless trade with the European Union, echoing warnings from the industry that just-in-time production could be hit by customs delays and additional bureaucracy. But it has signed a deal with workers at the Castle Bromwich factory to go from a five-day to a four-day working week with the same amount of hours which should allow the plant to operate more efficiently. Three of JLR's four European car plants are in Britain, giving it limited capacity elsewhere on the continent. The other, in Slovakia, only opened last year and is still being ramped up with other models allocated there. "We are making this investment because the ongoing Brexit uncertainty has left us with no choice, we had to act, for our employees and our business," JLR said. "We are committed to the UK as our home and will fight to stay here but we need the right deal." Both candidates to replace Prime Minister Theresa May, Boris Johnson and Jeremy Hunt, have both said they are prepared to take Britain out of the EU on Oct. 31 without a deal, although it is not their preferred option. Brexiteers have argued that the EUÂ’s biggest economy Germany, which exports hundreds of thousands of cars to Britain ever year, would do its utmost to protect that trade Friday's announcement comes after a turbulent few months for Jaguar which announced around 4,500 job cuts earlier in January and posted a 3.66 billion pound ($4.5 billion) loss in 2018/19.

2021 Jaguar F-Type arrives, and it still looks spectacular

The 2021 Jaguar F-Type is officially here, and proportionally, it looks a whole lot like the current F-Type. There’s nothing wrong with that, as the F-Type is still one of the best looking cars on sale today. Jaguar didnÂ’t want to mess with that winning formula, so it took a light brush to the British sports car. Despite the silhouette remaining largely unchanged, the finer styling points are significantly different. Jaguar gave the F-Type a larger grille, slimmer horizontal headlights, a new clamshell hood and reshaped side air intakes. Its taillights are smoothed out, but they feature JaguarÂ’s “Chicane” light graphic from the I-Pace. Thankfully, the V8Â’s menacing quad exhaust design remains for the high-performance R trim. “F-Type has always had great proportions and stance, and our latest design is all about enhancing those key Jaguar values. Our aim was to make the car more contemporary, more purposeful, and even more dramatic,” said Adam Hatton, Jaguar exterior design director. When it comes to engines, Jaguar is staying the course for the most part. The base engine is still the 2.0-liter turbocharged four-cylinder that makes 296 horsepower. Jag took the manual transmission away for the 2020 model year, and the eight-speed automatic transmission remains the only option for 2021 as well. The upgrade engine is still the supercharged V6 that makes 380 horsepower, though the 340-horsepower version is no longer available. Jaguar promises it still sounds spectacular. If you want maximum performance, the F-Type R is the way to go for the time being. Power is up to 575 horsepower and 516 pound-feet of torque in the R — these figures happen to be exactly the same as the SVR, but 25 horsepower and 14 pound-feet of torque more than the previous R.  Jaguar didnÂ’t reveal plans for a SVR version of this new F-Type down the road, but we assume one must be in development. Expect even more horsepower from that car if/when it arrives. As of now, Jaguar claims the R will hit 60 mph in 3.5 seconds, the same time as the SVR. Top speed is electronically limited to 186 mph. Every engine configuration comes with an active exhaust system as standard or optional. The R features a new “Quiet Start” mode thatÂ’ll help you maintain a friendly relationship with your neighbors. Jaguar made some handling improvements to the new F-Type, too. New springs and anti-roll bars complement recalibrated continuously variable dampers.