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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.

Why are all US-bound BMW i3 EVs with range extenders stuck at port?

The first BMW i3 EVs have been delivered in the US, but in a quirk of the rules, none of them have been the range-extended versions. Long-time BMW electric vehicle driver Tom Moloughney discovered this fact the hard way. His i3 REx has been sitting at a New Jersey port for over a week and he's getting impatient. The problem is something Moloughney calls a "Monroney Hold." So, instead of sitting there fuming, Moloughney did a bit of research and discovered that the problem is something he calls a "Monroney Hold." He says that "the EPA certification has not been completed so BMW doesn't have a Monroney label (window sticker) to post in the window before the car leaves the port, which is required by law. The range extender option changes (shortens) the car's electric range, and also requires an official MPG rating so BMW couldn't use the same Monroney label as they did for the all electric i3." You can read more on his website, but it turns out that the story isn't so simple. For one thing, the EPA testing has been finished. Washington State representative Chad Magendaz told Moloughney that he asked the EPA for an official statement and got the following from Linc Wehrly, Director of the Light-Duty Vehicle Center Compliance Division: "EPA tested the i3 REx and provided the results of that testing to BMW on May 13th. EPA is not aware of anything that would prevent BMW from importing the vehicles since May 13th." Then there's the official word from BMW. Spokesman Dave Buchko told AutoblogGreen that: We are moving as quickly as possible to release the first BMW i3 Range-Extender models to BMW i Centers. Receipt of test data from the EPA is one step, but not the final step, in the process of receiving certification from the EPA. Rules do not permit the release of vehicles for sale until EPA labels are finalized, produced and affixed to any vehicle. Barring any unforeseen delays, we expect that to happen by the end of this week. We have never certified a vehicle like this before. We are taking every precaution to make sure that everything is done in a timely, but more importantly correct manner. In that Monroney labels cannot be produced until the EPA certification process is complete, the characterization [of a "Monroney Hold"] is not technically incorrect, but there is more to it than that, as is often true in life. On a lighter note, BMW donated a loaded i3 to Brad Pitt's Make It Right charity foundation as a fundraiser. Read about that below.

Takata adds millions to recall expansion in US [UPDATE]

UPDATE: Ford spokesperson Kelli Felker has advised Autoblog that of the 1,509,535 total vehicles worldwide that the company is recalling, 966,504 of them are new additions for this expanded safety campaign. Last week, the National Highway Traffic Safety Administration announced that the Takata airbag inflator recalls would expand to an estimated 33.8 million vehicles in the US. However at the time, automakers weren't sure specifically which of their models might be affected under this enlarged campaign. Now, the numbers for BMW, FCA, Ford, and Mitsubishi are being released by the agency. Additionally, Honda is outlining the broadening of its own campaign. BMW's recall amounts to 420,661 vehicles in the US, an increase from 140,696 previously. All of the following models need their front, driver's side airbag replaced: 2002-2005 BMW 325i/325xi/330i/330xi Sedan 2002-2005 BMW 325xi/325i Sportswagon 2002-2006 BMW 330Ci/325Ci/M3 Convertible 2002-2006 BMW 325i/330i/M3 Coupe 2002-2003 BMW M5/540i/525i/530i Sedan 2002-2003 BMW 540i/525i Sportswagon 2003-2004 BMW X5 3.0i/4.4i BMW has received no reports of any injures or deaths from this problem in its vehicles. FCA has 5,224,845 vehicles globally in need of inflator replacements, according to its statement. However, the company is only aware of one injury related to the issue, which occurred in a 2006 Dodge Charger in southern Florida. There are 4,747,202 vehicles worldwide from the company that are affected on the front, driver's side. Among these, 4,066,732 are in the US, 374,508 are in Canada, and the rest are in other countries. The models are: 2005-2009 Dodge Ram 2500 Pickup 2004-2008 Dodge Ram 1500 Pickup 2006-2009 Dodge Ram 3500 Pickup 2007-2009 Dodge Ram 3500 Cab Chassis 2008-2010 Dodge Ram 4500/5500 Cab Chassis 2008-2009 Sterling 4500/5500 Cab Chassis 2004-2008 Dodge Durango 2007-2008 Chrysler Aspen 2005-2010 Chrysler 300/300C/SRT8 2005-2010 Dodge Charger/Magnum 2005-2011 Dodge Dakota 2006-2010 Mitsubishi Raider Also, there are 438,156 vehicles in the US, according to the NHTSA documents, that need their front passenger's side inflators replaced in the expansion of an earlier regional recall: 2003 Dodge Ram 1500 2003 Dodge Ram 2500 2003 Dodge Ram 3500 The total number of vehicles from Ford now covered under these campaigns stands at 1,509,535 worldwide. Of this total, there are 1,380,604 in the United States, 93,207 in Canada and 16,953 in Mexico.