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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.

Thanks to VW, BMW's 2017 diesels will be delayed

BMW confirmed Monday that US sales for its model-year 2017 diesel vehicles will be delayed because US regulators are taking longer than expected to certify the models. Bimmer, which sells diesel-powered 3-Series, 5-Series, X3, and X5 vehicles in the US, didn't give a timetable of when such domestic sales would start. Autoguide had previously reported of the potential delay for sales of US diesels, which account for about six percent of BMW's total sales in the US. "The product certification of all MY2017 BMW diesel models (328d Sedan, 328d Sports Wagon, X3 xDrive28d, X5 xDrive35d) has been delayed due to testing logistics," BMW spokeswoman Rebecca Kiehne wrote in an e-mail to Autoblog. "As a result, production of these models will commence once homologation has been finalized." US regulators appear to be taking a more deliberate approach to certifying diesel vehicles in the wake of the Volkswagen diesel-emissions scandal, which broke last September. Late last month, VW reached a settlement with US regulators that will cost the German automaker about $15 billion. With about a half-million impacted VW vehicles on US roads, the company will repurchase cars, end leases early, maybe fix some vehicles, and improve zero-emission vehicle technologies. Additionally, last week, VW reportedly told US dealers that they'd be compensated an undisclosed amount for their troubles. Some 2016 BMW diesel models were already subject to more stringent US testing procedures because of the VW situation. The BMW X5 xDrive35d was among the models that underwent more rigorous testing from the US Environmental Protection Agency (EPA) late last year. Other diesel models that received the additional scrutiny included General Motors' 2016 Chevrolet Colorado and GMC Canyon. Related Video:

Watch VW Group Night kick off the Frankfurt festivities

The Frankfurt Motor Show is Volkswagen's home affair. As a result, the whole of the automaker group makes a big splash, even before the show doors open. We'll be live from the Frankfurt floor starting early tomorrow morning, but tonight we're posted up in the stands at the always-entertaining Volkswagen Group Night. To give you a taste of what it's like to be there, we're going to be shooting some man-on-the-scenes video as the night progresses. Below you'll find videos of all the best that VW Group brands – Audi, Lamborghini, VW, the lot – have to offer, as quick as we can upload them. So, enjoy the Short Cut Videos you see here. And stay tuned as we add more to the tally, below. And, of course, be sure to check in on Autoblog early and often tomorrow, when we bring you official debuts of new production vehicles and concept cars, a ton of new video content, live image galleries, and lots more.Seat Leon Cross Sport Bentley Bentayga Lamborghini Huracan LP 610-4 Spyder Volkswagen Multivan PanAmerican Edition Bugatti Vision Gran Turismo Concept Audi E-Tron Quattro Concept Audi A4 Ducati Monster 1200 R Volkswagen Tiguan Skoda Superb Combi Porsche 911 Carrera S Coupe and Cabrio Volkswagen Tiguan GTE Porsche Mission E Concept Volkswagen Group Night Finale Green Frankfurt Motor Show Audi Bentley Bugatti Lamborghini Volkswagen SEAT Skoda Videos Original Video Frankfurt 2015