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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.

Audi and Porsche squabble over future product platforms

In the buildup to the 2014 24 Hours of Le Mans, Audi delivered an amusing video that worked on the playful rivalry between the German brand and its favorite frenemy, Porsche. We called it sibling rivalry, and at the time, it may have been just that. But just like sibling rivalries, it's all fun and games until someone gets hurt, and that's just what seems to be about to happen in the formerly peaceful Volkswagen Group family.
A new report from Automobile calls out the growing animosity between Porsche, who is backed up by Bentley, and Audi, whose primary ally is Lamborghini. No blows have actually been thrown, although there is a fair amount of "he said, she said" going on.
As Porsche tells it, for example, the new global fullsize SUV architecture being developed by Audi isn't up to snuff, citing size and structure issues, as well as an inability to accommodate a wide variety of engines.

Audi moves to patent electric Quattro and active-shutter wheels

Audi might have a few tricks up its sleeve for the coming years, with the Brits at Autocar uncovering a pair of patent filings made by the German luxury brand. The first is something we've seen before - wheel flaps - while the second is an evolution of one of Audi's trademark technologies.
We last saw wheel flaps on the Ford Atlas Concept in 2013, but the futuristic fuel-saving tech has so far failed to arrive on a production car. Audi may be seeking to change that, patenting the flaps that open and close automagically based on airflow. They can also open if the brakes get too hot.
The second patent is an evolution of Audi's Quattro all-wheel drive. The new AWD system uses an electrically driven rear axle and wheel sensors to figure out when and at which corner the car might lose traction, and is targeted largely at hybrid offerings, which is a field Audi has only recently dipped its toe into.