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U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.

2016 Mercedes-Benz C450 AMG Sport First Drive

A. M. G. Those three letters carry a lot of weight, especially to those who firmly believe that AMG is the hallowed performance pinnacle of the Mercedes-Benz brand. Those purists probably lifted an eyebrow at the front-drive platforms behind the CLA45 AMG and GLA45 AMG, and virtually every AMG-branded SUV that has hailed from the tuner-focused nameplate. But they might want to consider a second look at the 2016 Mercedes-Benz C450 AMG Sport. No, it's not a full-blown, fire-breathing AMG like the C63, and it doesn't get the newfangled "Mercedes-AMG" nomenclature. But after spending some seat time in the C450 AMG Sport, there's a decent chance you'll be quite alright with that. Inside and out, the C450 bears a strong visual resemblance to the mean looking, V8-powered, 469-horsepower C63 and its even fiercer, 503-hp, C63 S variant. The C-Class cockpit feels a bit snugger than you might expect considering its exterior proportions, particularly from the passenger seat. On the other hand, the new C-Class is also quite a bit more nicely appointed than its predecessor, which has inspired more than a few comparisons to the super posh S-Class. As for the C450 AMG, its more purposeful design cues and sportier details lend it a buttoned-down, modern feel. The biggest differentiator between the C and CLA class, however, is the rear of the cabin: the C's back seats are considerably roomier than the entry-level CLA's posterior perches. In place of V8 power, the modest 450 AMG packs a more reasonably endowed twin-turbocharged, 3.0-liter V6 that pushes 362 hp and 384 lb-ft of torque through a 7G-Tronic Plus automatic gearbox (in place of the the C63's dual-clutch seven-speed). Power is routed through all four wheels with a 66-percent rear, 33-percent front torque split. For some numerical context, the C450 AMG exceeds the C400 by 33 hp and the C300 by 121 hp, while it lags behind the C63 by a rather significant 107 hp. Crucially, the six-banger helps shed between 231 and 242 pounds compared the C63 models – this, despite a heavier all-wheel-drive arrangement, as opposed to the C63's rear-drive configuration. The C450 AMG shares a few pieces of hardware with its big brother AMG sibling, including the front axle, electromechanical steering, and upgraded brake setup (though you can't get carbon ceramic stoppers like you can in the C63 S).

2014 Mercedes S-Class priced lower from $92,900*

The massively overhauled 2014 Mercedes-Benz S-Class will start at $92,900, not including a $925 destination fee, when it arrives at US dealers in October. That's a 2.8-percent drop over the 2013 S-Class, although Mercedes is fast to point out that a drop in price doesn't equate with a drop in equipment for the executive sedan.
Besides an extra 20 horsepower from the 4.6-liter, biturbocharged V8, the S550 sports a standard panoramic sunroof, keyless start, a rear-view camera and LED headlights, taillights and interior lights. Adding the German manufacturer's 4Matic all-wheel-drive system bumps the S550's price up to $95,900.
If the S550 doesn't quite cut the mustard, you can wait until November, at which point Mercedes will quite happily sell you the new S63 AMG 4Matic for $139,500. Power is also up on the S63, from a max of 563 ponies with an AMG Performance Package to 577 horsepower as standard on the 2014 model.