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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.

2015 Mercedes-AMG C63 S First Drive [w/video]

As I mashed the throttle heading into the back straight of a nearly three-mile-long race track, I couldn't help but center my mind on two ostensibly disparate subjects: physics and pistons. If the heart of an automobile is its engine, the heart of the engine are its rotating bits – the crankshaft, pistons and the block they're nested inside. It seems fitting, then, that the internals of the twin-turbocharged 4.0-liter V8 typify the brand-new 2015 Mercedes-AMG C63 sedan I found myself piloting in Portugal. Whereas the last C-Class AMG availed itself of a brute of an engine, employing 6.2 liters of displacement to make its 451 horsepower the old fashioned way, the latest AMG's V8 engine has been downsized radically. I had the opportunity earlier in the day to actually hold the pistons of the new 4.0 Biturbo V8 in my hands, alongside those of the outgoing 6.2. The difference in size is staggering, the new lumps looking downright picayune in comparison to the latter. These eight seemingly diminutive pistons turn combustion into crankshaft-spinning power inside a block that is smaller, lighter and more compact than I'd have thought possible, considering the prodigious output the engine spits out. I had gone into this assignment expecting to pen an ode to lost love; a sonnet of sorrow bemoaning the switch from massive cylinders to wheezing power adders. But I was wrong. In fact, the report that follows may indeed read a little like a love song, except it will heap praise not on what used to be, but instead on what is now possible. The new heart of AMG more than makes up for its reduction in size by relying on turbochargers and smart engineering to turn just 4.0 liters into 469 horsepower and 479 pound-feet of torque starting at just 1,750 rpm, or as much as 503 ponies and 516 lb-ft in uprated S guise. Foot to the floor, eyes focused on the turn ahead, a hard right-hander named Primeira that requires hard braking and quick reflexes, I had a fleeting moment of clarity: These are some hard-working pistons. A few days on the street and track in and around Faro, Portugal, has convinced me that the new Mercedes-AMG C63 is a better car in any meaningful measurement than it was before. And I'll go one step further. Not only is this the best C-Class AMG ever, it's also my new favorite in the hotly contested segment that includes such knee-benders as the BMW M3 and M4.

Eight Mercedes Fuso Canter E-Cell trucks now in service

Portugal is far better known for its scenery and seascapes (not to mention some of its alcoholic beverages) than its place as a vehicle-testing center. But the European country is serving just that purpose for Daimler's Mercedes-Benz division and a new line of trucks. And they are of the battery-electric variety. Daimler has sent eight of its Mercedes-Benz Fuso Canter E-Cell battery-electric trucks for customer-trial purposes to various parts of the Western European country. And these customers include the Portuguese cities of Lisbon, Porto and Abrantes as well as delivery company Transporta. These entities will be testing trucks that have about a 60-mile single-charge range and deliver 150 horsepower. The trials for the trucks, which have 14-foot beds, will last one year. Daimler hasn't released a whole lot of details on further development or sales possibilities of the model. The hybrid version of the Fuso Canter debuted in the fall of 2009 and was under the Mitsubishi badge at the time, even though it was 85-percent owned by Daimler. That model is said to boost fuel economy relative to conventionally-powered trucks by as much as 23 percent. Take a look at Daimler's press release on the Fuso Canter E-Cell and its Portugal testing below. Zero emission and quiet as a whisper: eight new Fuso Canter E-Cell in customer trials Eight Fuso Canter E-Cell in real-life testing with customers for a year Locally emission-free and virtually noiseless Powerful, high-torque electric motor Battery capacity ensures range of more than 100 km Highlight of anniversary year for the Canter assembly plant in Tramagal, Portugal The drive system to suit: Canter Euro VI, Canter Eco Hybrid and Canter E-Cell The cleanest technology, whatever the application: Fuso is a pioneer of "green" drive systems in the commercial vehicle sector. The Daimler subsidiary in Japan is the home of Daimler Trucks' centre of competence for hybrid technology, and with this experience behind it, Fuso has also been responsible for developing the new battery-electric-powered "Zero Emission" Canter E-Cell. The first all-electric light-duty truck, produced in a small series, runs emission-free and almost silently. The Canter E-Cell for Europe is manufactured at the Tramagal plant in Portugal. Eight vehicles have now been released for customer trials.