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How tariffs in China could cause a meltdown in the American South

While BMW is clearly a German company, the crossovers that are exceedingly important to it are actually made in Spartanburg, South Carolina. And more than that, the Spartanburg plant (physically located in the town of Greer) is where the corporate know-how and capability for those vehicles is concentrated. These are the vehicles – specifically, the BMW X3, X4, X5, X6, X7 – that drove record growth for the company in 2018, according to BMW. But whatÂ’s most notable about BMW Group Plant Spartanburg, given current events, is that according to the U.S. Department of Commerce it was the largest automotive exporter by value for the fifth year running in 2018. ThatÂ’s worth emphasizing: largest automotive exporter by value. Not GM. Not Ford. BMW. And where might one assume that more than a few of those X vehicles are shipped to? China. Some 360 miles southwest of Spartanburg is Mercedes-Benz U.S. International, Inc., in in Tuscaloosa County, Alabama. It started building vehicles in 1997. Since then, Daimler AG has invested in excess of $5.5 billion in the facility. It manufactures the crossover now known as the GLE, formerly the ML-Class. It also makes the GLE coupe and GLS. Daimler describes the Tuscaloosa facility as “the traditional home of SUV production” for those vehicles. When it reported its global 2018 sales, Daimler noted that on a global basis SUVs account “for more than a third of all Mercedes-Benz sales.” According to the Chinese finance ministry, on December 15th the Chinese government will impose a 25% tariff on automobiles (and a 5% tariff on auto parts) from the U.S. Certainly this is going to have a direct effect on the sales of vehicles that are manufactured in the U.S. and exported to China. BMW and Mercedes are going to take it on the chin for the vehicles that they make in plants that they invested in so heavily in the U.S. Which could potentially mean that people in places like Greer, South Carolina, and Vance, Alabama, are going to find themselves in the crosshairs of the combatants. Soo too could Lincoln, which produces vehicles in places like Louisville, Kentucky (Navigator), Chicago, Illinois (Aviator) and Flat Rock, Michigan (Continental). Although the Tesla Gigafactory 3 is rapidly nearing completion in Shanghai, it is worth noting that vehicles built in Fremont, California, are being sold in China in numbers that donÂ’t make Musk unhappy.

Gordon Murray, F1-driven production and .. the Pontiac Fiero

Gordon Murray's design and engineering chops are unquestionable. But does his carmaking approach owe something to the short-lived Pontiac Fiero, a scrappy little car program that emerged from GM against serious resistance? Murray had a Formula One career that ran from 1969 to 1991, with stints at Brabham ('69 to '86) and McLaren ('87-'91), that resulted in several shelves' worth of trophies for the cars he was instrumental in designing. He moved on to McLaren Cars, the consumer side of things, where, during his tenure from 1991 to 2004, he helped design the McLaren F1 and the Mercedes-Benz SLR McLaren, two cars that took learnings from his two decades in Formula One. What do all of these cars have in common? Three things: They are light. They were built in limited numbers. And they were (and are) exceedingly expensive—when the McLaren F1 debuted in 1994, it stickered at $815,000. Murray went on to establish Gordon Murray Design in 2007. GMD has created some interesting concept vehicles, such as the diminutive T.25 city car (94.5 inches long, 51.1 inches wide and 55.1 inches high), and the OX, a lightweight truck for the developing world that packs like an IKEA shelf and is working toward realization through a worthy crowdfunding campaign established by the Global Vehicle Trust. Now he has created a vehicle manufacturing company, Gordon Murray Automotive, that will use manufacturing methods that he developed under the moniker "iStream." Unlike a unibody, there are the "iFrame," a cage-like construction made with metallic components, and the "iPanels," which are composite. The panels aren't simply a decorative skin; they actually provide structure to the vehicle. Presumably this has something of the F1 monocoque about it. Going back to the three elements, (1) this arrangement results in a vehicle that can be comparatively light; (2) Murray has indicated that his manufacturing company will be doing limited-run production; and (3) to launch Gordon Murray Automotive they are going to be building a flagship model, about which Murray said, "With our first new car, we will demonstrate a return to the design and engineering principles that have made the McLaren F1 such an icon." Which seems to imply that it will be on the pricey side. According to the company's verbiage, "iStream forges an entirely new production method that defies conventionality with its Formula One-derived construction and materials technologies." It also sounds a whole lot like ...

Lewis Hamilton on pole in France, Sebastian Vettel only seventh

LE CASTELLET, France — Lewis Hamilton seized pole position for the French Grand Prix in track record time as Mercedes, chasing their 10th successive win, swept the front row of the grid in dominant fashion on Saturday. The Formula One world championship leader was 0.286 seconds quicker than team mate Valtteri Bottas. Ferrari's Charles Leclerc qualified third with team mate Sebastian Vettel a distant seventh on a distinctly off day for the German. The pole, in a time of one minute 28.319 seconds, was a record-extending 86th of Hamilton's career and his third of the season. "I'm happy that I got the potential out of the car, the team did a fantastic job," said five-times world champion Hamilton, last year's winner from pole at Le Castellet's Paul Ricard circuit. "We've just been chipping away at improving the set-up of the car," added the Briton, who is 29 points clear of Bottas after seven races — all won by the pair. Hamilton also triumphed in the last two of 2018. Bottas was fastest in the second phase of qualifying but could not match Hamilton's sizzling pace when it mattered in the final shoot-out. "The wind changed direction and there was a couple of corners my line didn't work and I had to work it out but Lewis had a better lap," said the Finn. Mercedes have looked to be in a class of their own all weekend, with Hamilton or Bottas fastest in every practice session with Leclerc, rather than Vettel, consistently the best of the rest. Vettel struggled, backing out of his first hot lap and then failing to string together all the sectors smoothly on his second attempt. "I don't know what happened, I lost so much momentum there was no point to finish that lap," said the German, who starts behind the Renault-powered McLarens of British rookie Lando Norris (fifth) and Spaniard Carlos Sainz (sixth). "Some laps it felt good and others it didn't. I didn't get the best out of the car but it was difficult for me, but some laps I didn't have he grip I had before." Vettel's time of 1:29.799 was eighth tenths of a second slower than Leclerc's best. Leclerc, who starts with Red Bull's Max Verstappen alongside, asked the team over the radio to get Vettel to speed up but the Monegasque said his lap had not been compromised. Australian Daniel Ricciardo starts eighth for Renault and Red Bull's Pierre Gasly lines up ninth for his home race with Italian Antonio Giovinazzi 10th for Alfa Romeo.