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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.

Porsche reviving 718 name for new Boxster and Cayman

The next-generation Boxster and Cayman are coming next year, and when they launch, they'll have a new name: 718. There's historical significance there – in 1957, Porsche launched the 718 racecar with a mid-mounted, four-cylinder engine. And when the new Boxster and Cayman come to market, they'll be powered by a new turbocharged, flat-four engine, mounted amidships just like in the current cars. That powertrain isn't a surprise, but the name change certainly is. Officially, the cars will be called 718 Boxster and 718 Cayman, and Porsche says the two models "will share more similarities than ever before," both visually and mechanically. What's more, Porsche confirms the 718 Boxster will carry a higher price tag than the 718 Cayman, which is a switch from the company's current pricing strategy – right now, a base Cayman costs $500 more than a standard Boxster. Technical details haven't been confirmed yet, but an earlier report suggests the 2.0-liter flat-four will produce 240 horsepower in the base cars and 300 hp in the S models. GTS versions are tipped to produce as much as 370 hp from this same flat-four engine. Both 718 models will be unveiled throughout the course of 2016. Have a look below for Porsche's official statement. Related Video: Boxster and Cayman to be branded as 718 model range next yearPorsche's mid-engine sports cars to receive new name Atlanta, Georgia. The mid-engine sports cars from Dr. Ing. h.c. F. Porsche AG will be named 718 Boxster and 718 Cayman, respectively, when the models are introduced over the course of 2016. The 718 designation is a reference to the ground-breaking sports car Porsche introduced back in 1957, which achieved great success in a number of renowned car races. The 718 Boxster and 718 Cayman will share more similarities than ever before – both visually and technically. In the future, both will have equally powerful turbocharged flat-four cylinder engines. The Roadster will be positioned at a higher price level than the Coupe – as is the case with the 911 models. The 718 model range is driven by the four-cylinder concept and the history of distinguished Porsche sports cars. The latest example is the 919 Hybrid LMP1 race car, which is powered by a highly-efficient, turbocharged 2.0 liter four-cylinder engine.

Former Porsche CEO Wiedeking indicted over VW takeover bid

Do you recall the failed efforts by Porsche to take over Volkswagen? According to a Bloomberg report, former Porsche CEO Wendelin Wiedeking (above) and ex-CFO Holger Haerter have finally been charged with market manipulation over the exercising of options as part of the German sportscar manufacturer's ill-fated attempt to take over the much larger VW. That failed bid eventually resulted in the reverse coming true - VW swallowing Porsche.
The charges leveled by Stuttgart prosecutors come after a three-year investigation centered around allegations that Porsche execs made a concerted effort to increase the company's share in VW to 75 percent in preparation for a hostile takeover. Porsche had previously told its investors on at least five occasions that it had no intention to buy VW.
Portions of the investigation have subsided, according to prosecutors, citing an inability to prove certain improprieties with a "necessary degree of certainty." The number of charges is down to 5 from a previous 14 counts regarding "information-based market manipulation."