Quattro Awd 4-door Sedan 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.

Consumer Reports says infotainment systems 'growing first-year reliability plague'

The Consumer Reports Annual Auto Reliability Survey (right) is out, and the top two spots look much the same as last year's list with Lexus and Toyota in first and second place, respectively. However, there are some major shakeups for 2014, with Acura plunging eight spots from third in 2013 to 11th this year, and Mazda replaces it on the lowest step of the podium. Honda and Audi round out the top five. This year's list includes six Japanese brands in the top 10, two Europeans, one America and one Korean.
Acura isn't the only one taking a tumble, though. Infiniti is the biggest loser this year by dropping 14 spots to 20th place. Other big losses come from Mercedes-Benz with an 11-place fall to 24th, and GMC, which declines 10 positions to 19th.
Perhaps unsurprisingly, it's not traditional mechanical bugs hauling down these automaker's reliability scores. Instead, pesky problems with infotainment systems are taking a series toll on the rankings. According to Consumer Reports, complaints about "in-car electronics" were the most grumbled about element in new cars. Problem areas included things like unresponsive touchscreens, issues pairing phones and multi-use controllers that refused to work right.

2016 Audi S6 and S7 First Drive

Audi paired the S6 and S7 for the purposes of this test in Southern California, but these are rather disparate cars. A three-box sedan, even a sporty one like this S6, is for a specific kind of customer. A sleek, four-door hatchback like the S7, on the other hand, is for a different kind of person. These two people might not be as different as Dr. Jekyll and Mr. Hyde, but at the very least the S7 is the S6's lothario neighbor – the one who's always got a glass of scotch in one hand and a chambermaid in the other. A day spent in the canyons around Los Angeles proves there's a big difference between these cars. First, though, let's discuss their similarities. The S6 and the S7 get the same design overhaul we detailed in our piece on the 2016 Audi A6, namely the edge work done on the grille, bumpers, headlights, and taillights. Additionally, they get Audi's new MMI system – the brand's next step in infotainment. A day spent in the canyons proves there's a big difference between these cars. Changes exclusive to these S models include flat-bottomed steering wheels with model badges at the base of the center spoke, and aluminum-finish shift paddles. The pedals and footrest get the aluminum look as well. There's also a new shift lever, and a revised design for the Quattro badge. New seat and surface treatments join the options list, such as Beaufort Walnut inlays and Valcona leather seats in Cedar Brown. The S7 has a new Arras Red interior option as part of its design selection palette, but the striking addition there is the carbon fiber inlay it comes with, which is interwoven with a red thread. You lean in really, really close and see that scarlet yarn, and the cockpit immediately feels more special. It's the kind of beautiful subtlety you expect from Audi, and the result is a scrumptious cabin. The twin-turbo, 4.0-liter V8 gets 30 more horses, topping out at 450 horsepower. Torque remains the same at 406-pound-feet, but fuel economy increases ever so slightly to 18 miles per gallon in the city, 27 mpg highway, and 21 mpg combined. The S6 makes a meal of curves, but it does give away a hint of the effort. It seems that a fair number of buyers wanted S vehicles without the whole suite of go-fast bits; they liked having the "S" on their chests, they didn't need all of the superpowers. Thus, Audi took the Quattro sport differential and dynamic steering off the standard menu, and bundled it with the sport exhaust to create the now-optional Sport Package.