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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.

Are supercars becoming less special?

There's little doubt that we are currently enjoying the golden age of automotive performance. Dozens of different models on sale today make over 500 horsepower, and seven boast output in excess of 700 hp. Not long ago, that kind of capability was exclusive to supercars – vehicles whose rarity, performance focus, and requisite expense made them aspirational objects of desire to us mortals. But more than that, supercars have historically offered a unique driving experience, one which was bespoke to a particular model and could not be replicated elsewhere. But in recent years, even the low-volume players have been forced to find the efficiencies and economies of scale that formerly hadn't been a concern for them, and in turn the concept of the supercar as a unique entity unto itself is fading fast. The blame doesn't fall on one particular manufacturer nor a specific production technique. Instead, it's a confluence of different factors that are chipping away at the distinction of these vehicles. It's not all bad news – Lamborghini's platform sharing with Audi for the Gallardo and the R8 yielded a raging bull that was more reliable and easier to live with on a day-to-day basis, and as a result it went on to become the best-selling Lambo in the company's history. But it also came at the cost of some of the Italian's exclusivity when eerily familiar sights and sounds suddenly became available wearing an Audi badge. Even low-volume players have been forced to find economies of scale. Much of this comes out of necessity, of course. Aston Martin's recent deal with Mercedes-AMG points toward German hardware going under the hood and into the cabin of the upcoming DB11, and it's safe to assume that this was not a decision made lightly by the Brits, as the brand has built a reputation for the bespoke craftsmanship of its vehicles. There's little doubt that the DB11 will be a fine automobile, but the move does jeopardize some of the characteristic "specialness" that Astons are known for. Yet the world is certainly better off with new Aston Martins spliced with DNA from Mercedes-AMG rather than no new Astons at all, and the costs of developing cutting-edge drivetrains and user interfaces is a burden that's becoming increasingly difficult for smaller manufacturers to bear. Even Ferrari is poised to make some dramatic changes in the way it designs cars.

Here's Aston Martin's DP-100 racer for Gran Turismo in all its virtual glory [w/video]

After a little bit of teasing, Aston Martin is finally unveiling its Design Prototype 100 Vision Gran Turismo Concept at the Goodwood Festival of Speed that makes it into Gran Turismo 6 in July. With the DP-100, the company's designers have gotten a chance to shrug off the shackles of realism and create the first-ever Aston Martin "road car" with the engine mounted behind the driver. Designed and engineered over the course of six months by the Aston Martin Design team, the crew started from a clean sheet of paper and were allowed to design whatever they liked with no concerns about production feasibility. At the front, there's the brand's classic grille shape, but otherwise the concept is completely original. The shape of the DP-100 is beautifully simple, looking like a collection of intersecting arches in profile. Of course, in Gran Turismo 6, gamers are going to want to race the car more than look at it. The DP-100 employs Aston Martin's famous V12 engine coupled with two turbochargers to produce 800 horsepower. Active aerodynamic aids keep it planted during cornering, as well. Aston Martin previously hinted that it might show off a physical version of the concept at this year's Goodwood Festival. Although, we haven't seen it yet, the concept would fit perfectly next to Nissan's own Vision Gran Turismo design at the celebration of all things automotive. Scroll down to watch a video of the DP-100's designers talking about the car and read the official release. ASTON MARTIN UNVEILS VIRTUAL DP-100 RACER FOR GRAN TURISMO®6 Design Prototype 100 joins stable of Vision Gran Turismo racers in popular racing game for PlayStation®3 Designed and engineered over six months by Aston Martin Design team Downloadable for in-game play in July 2014 Aston Martin is unveiling an exceptional new addition to the hugely popular PlayStation®3 exclusive racing game Gran Turismo®6 (GT6™) in the shape of the stunning Design Prototype 100 – DP-100 Vision Gran Turismo. Developed in-house by the Design team at Aston Martin, led by Design Director Marek Reichman, DP-100 Vision Gran Turismo is a new, virtual-only GT racer that will be available for Gran Turismo®6 (GT6™) owners to download in July 2014, following the global launch at Goodwood Festival of Speed. Starting with nothing but the traditional 'blank sheet of paper' the design team and design engineers worked for six months to create the new addition to the Vision Gran Turismo stable of race cars.