Audi: A7 Quattro Prestige on 2040-cars

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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 Audi Q3 is ready to woo America's young and upwardly mobile

You can hardly blame Audi for its decision to finally bring its Q3 compact crossover to America, even though it's been on sale in other global markets since 2012. CUVs of all stripes are red hot, and the number of players in the US entry-level premium segment is mushrooming. Rapidly growing Audi simply can't afford to be left out of the discussion in favor of vehicles like the BMW X1, Land Rover Range Rover Evoque, and even small near-luxury entries like the Buick Encore, if only because capturing these customers could result in subsequent sales of more profitable models down the road.
Audi evidently intends to attract these new, younger customers by spoiling them in decidedly unGermanic fashion: by offering lots of standard equipment. Peruse the spec sheet on base models from rivals and you'll see things like manually adjusted faux leather seats, conventional projector headlamps, and little in the way of frills. By comparison, the 2015 Q3 comes with an embarrassment of standard features, including heated and power-articulated leather seats, panoramic moonroof, Xenon headlamps with LED accents and keyless start.
First impressions of the four-cylinder, 200-horsepower Q3 revealed here at the Detroit Auto Show are very positive, with a rakish (if overly familiar) shape and a fair amount of utility with up to 48.2 cubic feet of storage with the rear seats folded. If Audi can price the Q3 similarly to the entry-level BMW X1 sDrive28i ($31,825 delivered) when it arrives this fall, we think it'll sell like hotcakes - just like its Q5 big brother.

Audi Q3 production begins in Spain

2012 Audi Q3 - Click above for high-res image gallery
It wasn't that long ago that Audi had no SUVs in its lineup - aside from the A6 Allroad Quattro - despite being known for its all-wheel-drive vehicles. But that's all changed, just as it has for BMW and Porsche. The Q7 was followed by the Q5, and now the Q3 has started production as well.
The first Q3 rolled off the assembly line today at the plant in Martorell, Spain. The facility belongs principally to Audi's sister-company Seat, but has gone through a considerable expansion - funded by both Audi and Seat - to prepare for the Q3's production.