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Audi chooses A3 as its Super Bowl darling

With Super Bowl XLVIII less than two months away, we're sure to hear plenty of news about automakers and their various plans for in-game commercials. Audi has announced that it will return for its seventh year of Super Bowl advertising, but few details were provided about the spot other than the fact that it will focus on the all-new 2015 A3.
The 60-second ad will air during the third quarter of the game, and while Audi did not say how much it is spending on the spot, Ad Age says that a 30-second commercial will average around $4 million for next year's Big Game. Last year, Audi's choose-your-own-adventure "Prom" commercial was the second favorite video in our unofficial poll of readers, but the competition should heat up even more this year with General Motors returning to Super Bowl advertising after taking a year off and Jaguar preparing its first-ever Super Bowl ad to introduce the F-Type Coupe.

The next-generation wearable will be your car

This year's CES has had a heavy emphasis on the class of device known as the "wearable" – think about the Apple Watch, or Fitbit, if that's helpful. These devices usually piggyback off of a smartphone's hardware or some other data connection and utilize various onboard sensors and feedback devices to interact with the wearer. In the case of the Fitbit, it's health tracking through sensors that monitor your pulse and movement; for the Apple Watch and similar devices, it's all that and some more. Manufacturers seem to be developing a consensus that vehicles should be taking on some of a wearable's functionality. As evidenced by Volvo's newly announced tie-up with the Microsoft Band 2 fitness tracking wearable, car manufacturers are starting to explore how wearable devices will help drivers. The On Call app brings voice commands, spoken into the Band 2, into the mix. It'll allow you to pass an address from your smartphone's agenda right to your Volvo's nav system, or to preheat your car. Eventually, Volvo would like your car to learn things about your routines, and communicate back to you – or even, improvise to help you wake up earlier to avoid that traffic that might make you late. Do you need to buy a device, like the $249 Band 2, and always wear it to have these sorts of interactions with your car? Despite the emphasis on wearables, CES 2016 has also given us a glimmer of a vehicle future that cuts out the wearable middleman entirely. Take Audi's new Fit Driver project. The goal is to reduce driver stress levels, prevent driver fatigue, and provide a relaxing interior environment by adjusting cabin elements like seat massage, climate control, and even the interior lighting. While it focuses on a wearable device to monitor heart rate and skin temperature, the Audi itself will use on-board sensors to examine driving style and breathing rate as well as external conditions – the weather, traffic, that sort of thing. Could the seats measure skin temperature? Could the seatbelt measure heart rate? Seems like Audi might not need the wearable at all – the car's already doing most of the work. Whether there's a device on a driver's wrist or not, manufacturers seem to be developing a consensus that vehicles should be taking on some of a wearable's functionality.

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.