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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 Volkswagen GTI: Clicking, beeping, and trying to stay cool [w/video]

My first car didn't have air conditioning. Well, that's not entirely true. The car had A/C, it just didn't work. Nevertheless, I survived summer after summer of sweating behind the wheel – par for the course in a 15-year-old Mitsubishi with 235,000 miles on the odometer. But it's another thing entirely when that same experience happens in a 2015 Volkswagen GTI after just 7,000 miles of use. That's how Autoblog kicked off summer with the long-term GTI: sweating in plaid seats. The car went to Suburban Volkswagen in Troy, MI, where the technicians told me the air-con just needed a recharge (despite asking them to inspect it further). They recharged it, the air blew cold, and 48 hours later, the A/C stopped working again. (Surprise!) The problem was a leak in the compressor/condenser line, so a new one was installed, the system was charged, and now it's fixed. For real this time. Unfortunately, that second-coming happened during a road trip with editor-in-chief Mike Austin at the helm. His logbook comments are, as you'd expect, appropriately salty. "Everybody loves the GTI, right? Not quite. I drove to Toronto for a weekend. On the way home, the A/C quit working. This wasn't too much of a problem until we hit the border control line to re-enter the United States. I always pick the slow line, somehow. Thusly baked in the heat, with outside temperatures above 80, the GTI didn't cool back down for the rest of the trip. Then I learned we already fixed the A/C once." "Of course, any car on that day with a surprise A/C failure would earn my ire," Austin notes. "It just seems a little more irritating on a new car. Otherwise, yeah, this is a great car." A great car, indeed. Everyone loves spending time with the GTI. It's got plenty of power, it's quiet, it's comfortable, and it eats up highway miles. We've got just over 10,000 miles on the odometer as of this writing, and as summer carries on, many editors have requested extended periods of seat time in the GTI for weekend getaways and longer road trips. But it's still not perfect. Following the A/C fiasco, there's another, more curious problem plaguing the GTI. Every time the car starts, a weird, varied-tempo, loud clicking is heard from the dash. We think it's coming from the direction of the glovebox, and it's not the same click patten every time. Sometimes it's one or two knocks, sometimes it's several. See what I mean in the video below. Weird, right? Another trip to Suburban Volkswagen offered no help.

Volkswagen Jetta getting new 1.4L turbo four

In yet another example of engine downsizing, Volkswagen has announced it is slotting a new 1.4-liter turbo four into the Jetta. The smaller, forced-induction engine will replace the naturally aspirated 2.0-liter four in the Jetta S and the 1.8-liter turbo four in the Jetta SE, bringing with it direct injection and improved fuel economy. The 1.4-liter turbocharged four-cylinder engine is from the EA211 family. It's made of aluminum and features a compact single-scroll compressor, an intercooler integrated into the injection-molded induction pipe, exhaust manifold integrated into the head, variable intake and exhaust valve timing, direct fuel injection, dual overhead cams driven by a toothed belt, and a 10.0:1 compression ratio. All that adds up to 150 horsepower and 184 pound-feet of torque, mated in the Jetta to either a five-speed manual or six-speed automatic transmission. Fuel economy figures have yet to be certified, but are projected to come in at around 39 miles per gallon on the highway with the automatic, representing 13- and 7-percent improvements over the units it replaces. The EA211 is Volkswagen's new global small gasoline engine family, manufactured principally by Skoda in the Czech Republic. It's set to replace the old EA111 series, offering higher efficiency in a more compact and adaptable package. The Jetta Hybrid already uses essentially the same engine paired with an electric motor, and is being adapted to three-cylinder formats as well. INTRODUCTION OF NEW 1.4T ENGINE REINFORCES VOLKSWAGEN'S LEADERSHIP IN TURBOCHARGED, DIRECT INJECTION TECHNOLOGY Aug 4, 2015 Fitment of EA211 engine in Jetta models extends implementation of intelligent downsizing to 97 percent of Volkswagen vehicles sold in the U.S. market Traverse City, MI — Volkswagen pioneered the use of small displacement; highly efficient turbocharged and direct-injection engines in the U.S. Volkswagen first used this combination of turbocharging and direct injection in this market in its TDI® Clean Diesel engines in the Passat in 1996 and extended it into the gasoline field in the 2006 Jetta GLI and GTI models. Since then, the Volkswagen EA888 four-cylinder engine has set the benchmark for small-displacement turbocharged engines, beginning with the 2009 CC, while the EA288 TDI has set the standard for diesel engines in the North American market since it first appeared in the 2009 Jetta TDI Clean Diesel.