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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.

Mini Rocketman concept reportedly going into production as an EV

Remember the Mini Rocketman Concept from the 2011 Geneva Motor Show? If you don’t thatÂ’s OK, as itÂ’s been almost an entire decade since Mini pulled the wraps off. Despite the massive time lapse, Mini decided to revive the concept, not just for show. The companyÂ’s finally going to put the Rocketman into production, as an electric vehicle. We've heard this before, a few years ago, but nothing was set in stone. Now it seems a decision has been made. AutoCar in Britain recently learned that the Rocketman will fulfill its premise as the companyÂ’s first subcompact city car. The production model, scheduled for 2022, will reportedly be heavily reworked and built as a joint project with Chinese automaker Great Wall Motors. “WeÂ’re advancing plans for a model along the lines of the Rocketman. ItÂ’s a car we have been looking at for a long time, but to build it profitably at the price point we think customers are prepared to pay, you need a joint venture partner to share costs. Great Wall Motors has provided that opportunity with a shared electric car platform that will be used by Mini,” an anonymous “senior BMW official” was quoted as saying. The production Rocketman will retain its three-door hatchback design and is expected to serve as the manufacturerÂ’s newest entry-level model. It will be built by Great Wall Motors in Jiangsu, China, while BMW oversees the design and production with plans to sell it in all markets globally. When the Rocketman first surfaced at Geneva, it was essentially BMWÂ’s direct response to DaimlerÂ’s Smart ForFour. However, even with positive feedback from prospective customers, the project was shelved because development discussions between BMW and its initial partner, Peugeot, ended abruptly. The companies were reportedly going to share platforms and powertrains in another joint venture. In the new agreement with the Chinese company, the production model will apparently use a small-car platform used by Great Wall Motors called the Ora R1. The Peugeot-BMW project was going to use either a three-cylinder gas or diesel engine. But the new model will gain an all-electric powertrain by Spotlight Automotive as a part of BMWÂ’s massive plan to launch up to 25 new plug-in hybrid and all-electric vehicles by the end of 2023. One of those models is the newly released all-electric Cooper SE.

Mini recalls nearly 100,000 cars for potential electrical fire risk

Mini is recalling more than 97,000 cars to address a potential fire risk. The recall covers the 2008-2014 Mini Clubman (including Cooper, Cooper S and John Cooper Works models) and the 2007-2013 Mini Hardtop 2 Door (again encompassing Cooper, Cooper S, John Cooper Works variants). In both models, a control module beneath the driver-side A-pillar is susceptible to water intrusion under certain circumstances. If the electronics inside are exposed to water, a short circuit may occur, which Mini says could lead to a "thermal event" — engineer speak for "fire." While Mini says there are multiple circumstances under which the module can become compromised, the recall is currently limited to models sold in climates where the use of road salt is prevalent. In this environment, road salt entering the cabin via normal means (read: your boots) can accelerate corrosion if water is getting into the cabin. How might that happen? Mini says a common culprit is its own sunroof drain. Here's the full explanation, lifted directly from Mini's defect report: This safety recall involves the Footwell Control Module (FRM), an Electronic Control Unit (ECU) which controls various lighting and power window functions, and is installed near the bottom of the driverÂ’s side A-pillar behind an interior trim panel. Due to several contributing factors (environmental, certain US StatesÂ’ wintertime road treatment, vehicle design configuration and age), over time, the FRM could become susceptible to corrosion. For vehicles equipped with a sunroof, after a multi-year period involving large temperature changes, multiple freeze/thaw cycles can cause the vehicleÂ’s sunroof drain hose to become damaged, loosen and eventually detach from the drain pipe within the A-pillar, which could allow water to enter the vehicle interior. In certain US states, large amounts of road salt may be utilized during their wintertime road treatment activities. If water were to enter the interior, then in combination with road salt that may be present in the footwell, this could create an electrolyte solution. If this solution were to contact the FRM then, over time, this could lead to corrosion, possibly resulting in a short circuit. In rare cases, this could lead to a thermal event.