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2014 Audi SQ5

It may be obvious at this point, but here in the United States, European manufacturer routinely give us the short end of the stick. Now, I'm not talking about models or brands that don't come here, like the Mercedes-Benz A-Class or the entire Renault line. No, instead, I'm referring to cars that are sold right here in the Land of the Free in one bodystyle, while Europe enjoys the same vehicle with a wider variety of configurations.
A prime example of this is the Audi S4/S5 line. In America, we can have the supercharged twins in two-door coupe, four-door sedan, and cabriolet body styles. Meanwhile, our Euroland cousins get the same trio of bodystyles, as well as the A5/S5 Sportback, a characterful 'four-door coupe,' and a versatile hauler, the S4 Avant. At first glance, Audi of America lacks a vehicle that can compete with the latter's blend of performance, versatility and subdued looks. So, what's an American with around $60,000 and an obsession with quick, conservative haulers to do? Well, he can buy an SQ5. (Though it bears mentioning, our US-spec SQ5 is vastly different than what's available to our European friends.)
The SQ5 has a huge number of things going for it that make it a viable alternative to a proper hot wagon, and foremost among them are its looks - this is a sleeper. Audi has thankfully decided not to molest the clean looks of the standard Q5 when penning the sportier model.

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.

Don't hold your breath for an Audi RS8

There was a time not so long ago when Quattro GmbH produced essentially one model at a time. But that time is behind us. These days it's expanding into a full-fledged performance division to rival Mercedes-AMG and BMW's M department. Quattro GmbH is currently building the Audi RS4 Avant, RS5 coupe and cabrio, RS6 Avant, RS7, RS Q3 and the TT RS coupe and roadster - not to mention the R8. And while it's showing no signs of slowing down, but the latest intel from across the pond suggests we shouldn't count on an RS version of Audi's flagship sedan.
This according to Car and Driver, which spoke to Stephan Reil, the chief engineer at Quattro GmbH. Reil says Audi works on a teutonically rigid performance formula: an RS model has to have 20 to 25 percent more power than the existing S version. Considering that the existing S8 makes 512 horsepower and the RS7 a solid 553, we're not sure Audi really needs anything more powerful. But by Reil's calculations, the RS8 would need to pack between 630 and 655 hp, which would put it well ahead of rivals like the 550-hp Jaguar XJR, the 540-hp BMW Alpina B7, the 523-hp Maserati Quattroporte and even the new 577-hp Mercedes-Benz S63 AMG - and in league only with the even more powerful S65 AMG, which in its outgoing form produced 630 hp.
The question then comes down to whether there are enough customers lining up for the S65 that Audi would want to poach away from Mercedes. Or perhaps more pertinently, whether it might end up just taking customers from the new Bentley Flying Spur, which is already offering 616 horsepower in an even more prestigious, if less performance-focused package. Either way you look at it, Audi is apparently steering clear.