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Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

2016 Audi A3 Sportback E-Tron First Drive

While its parent company is still in the throes of an emissions scandal that has thrust the "green" credentials of automakers worldwide under the microscope, Audi is launching its first plug-in hybrid in the US. Audi is ready to double down on its electrified future, putting up its own reputation as collateral. This A3 Sportback E-Tron – a vehicle we've sampled in prototype form – is a tech-savvy plug-in car that could be the perfect vehicle to mark the brand's new commitment to an electric lifestyle. Straightaway, Audi USA President Scott Keogh addressed the TDI situation. He says he and the rest of the company are "shocked, followed by appalled, followed by anger, and now in the phase of drop-dead determination to make this thing right." Out of the 500,000 affected 2.0-liter TDI engines around the world, 14,000 are in Audis: about 3,000 A3 TDI sedans and about 11,000 A3 TDI Sportbacks. "It's quite simple. CARB and the EPA have told us these cars can stay on the road, they will stay on the road until we have a fix, and when we have a fix, we will absolutely fix these cars." The most important thing going forward, Keogh says, is regaining the trust of both the dealers and customers. Audi has been enjoying a bit of momentum in recent years, building a reputation for itself along the way. Audi came on the scene in the US in 1969, but it took until 2010 for the company to sell 100,000 units in a single year. Now, "In 2015, we're starting to look down the barrel of nearly doubling our sales in five years," says Keogh. The A3 achieves a 40-percent segment share, and for 75 percent of those buyers, it is their first purchase of a luxury brand. But as its own pace increases, the momentum of the industry as a whole has pulled Audi toward this foray into electromobility. Enter the A3 Sportback E-Tron. There's a little extra weight from the battery pack, but the suspension does a good job of keeping it unnoticeable while driving. The A3 E-Tron has several strengths working in its favor. First of all, as Keogh puts it, the hatchback is a "real, proper Audi – a real, proper, fully rounded driving machine." Qualifications such as "this is an electric car" don't matter. "People just want to buy a car," he says. It has the technology, build quality, and drivability of an Audi.

VW Group plan puts Porsche in charge of a 'super-premium' division

An Automobile report looks into what's happening on the organizational and technical sides of the Volkswagen Group, and what those changes could mean for the premium brands. The wide-angle view is that Porsche appears to have been anointed to "coordinate the future activities" at Audi, Bentley, Bugatti and Lamborghini. Audi would cede Lamborghini guardianship to Stuttgart, and Ducati — via a new concern called Ducati Enterprises — would become the shepherd for VW's other Italian investments. Executives target Jan. 1, 2019, to complete the reshuffle. VW wants to save a boodle by tying up four of its five top-tier brands, and putting the one with the highest ROI in charge. Porsche, within its own house, wants to reduce expenditures by $2.3 billion per year over for four years, the savings already earmarked for improving internal processes like R&D and production. Having Porsche share those gains as well as lead development of platforms, components and future-tech strategies for the sister sports car brands could benefit everyone. In the near-term, the brands have their own plans: Bugatti CEO Stephan Winkelmann is said to want a Chiron Superleggera, a roofless and "completely reskinned" Chiron Aperta, and a track-only Chiron SS. The Superleggera could take the Chiron Sport's and Divo's Jenny Craig routines even further. The Aperta seems a natural successor to the Veyron Grand Sport, a natural evolution of the recently introduced Sky View roof, and a reskin might include numerous Divo cues. It's also said Bugatti's considering "an all-electric high-end model" in conjunction with Porsche, Rimac, and Dallara, but name one supercar or hypercar manufacturer that isn't considering a lightning-fast EV. Lamborghini, deep into work on follow-ups for the Huracan and Aventador, might get a bit of a bump with the new plan. The carbon "monofuselage" for the next V12 flagship is said to be too far developed and too complex to scrap. It puts two electric motors on the front axle, batteries in the middle, and a naturally aspirated V12 with around 770 horsepower plus another e-motor with 402 horsepower in back. The Huracan is said to get a version of the same carbon architecture at the moment, but the corporate reorganization might press pause on it. Automobile says options include continuing the Huracan/ Audi R8 twinning, but that depends on Audi saying "Ja" to a third-gen R8 with Lamborghini bones.