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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.

BMW i3 called 'most revolutionary car' since Ford Model T

The Ultimate Driving Machine, or at least one of them, may also be the Ultimate Engineering Success. Consultant Munro & Associates, which specializes in automotive tear-down analysis, pretty much said as much when taking an under-the-skin look at the BMW i3 plug-in. In short, the firm liked what it saw. Presenting at Detroit's Plastic's in Automotive conference this week, Munro CEO Sandy Munro called BMW's first mast-produced plug-in model the most revolutionary car "since Henry Ford's Model T." The car earned big points for its substantial uses of materials that are both lightweight (key for any plug-in's range) and recyclable. BMW has touted these advantages all along. In late 2013, the German automaker went as far as saying its use of carbon fiber reinforced plastic (CFRP) would reduce customer costs related to both repair and insurance. The i3 went on sale in the US last May and, by the end of the year, moved more than 6,000 units here. It sold almost 17,800 The i3 last November also was named the Green Car of the Year at the Los Angeles Auto Show, beating out models such as the compressed-natural-gas-powered Chevrolet Impala B-Fuel and the Audi A3 TDI diesel. Munro made news earlier this week when it offered a free i3 for anyone who bought the master- or OEM-level version of the report, though the report isn't cheap and that offered disappeared once Munro made his presentation. Check out Munro & Associates' press release below. Munro Discusses Groundbreaking Technology Finds from BMW i3 Teardown at Plastics in Automotive Conference; Offers New BMW i3 for Purchasers of Master-level Report DETROIT, Jan. 14, 2015 /PRNewswire/ -- During today's Plastics in Automotive Conference in Detroit, Sandy Munro, CEO of Munro & Associates, Inc., discussed – for the first time publicly – his consulting firm's findings from its extensive deep-dive teardown, costing and benchmark study of the BMW i3 urban electric car. During his presentation, "Deconstructing the BMW i3: Groundbreaking Technology and the Composite Car," Munro discussed the carbon fiber life module, polymer components, recyclability and safety of what he considers to be "the most revolutionary car in terms of creative engineering and manufacturing since Henry Ford's Model T." During the presentation, Munro focused on four crucial aspects of the BMW i3: the manufacturing of its carbon fiber life module; its polymer components; recyclability; and safety.

Europe's BMW 1 Series hatch caught looking fresh faced

Hey, remember the BMW 1 Series? Yes, German brand's successors to the US-market coupe and convertible have one-upped the old car to wear the 2 Series designation now, but in other markets, our No. 1 crush still lives on, and as evidenced in these spy shots, the entry-level hatch appears to be undergoing a modest facelift.
We've spotted prototypes of the refreshed 1 Series before, with the majority of the car's changes focused around the front fascia. This time around, we're seeing the three-door variant, with wheels seemingly fitting of a Sport or even M Sport trim.
Of course, this One's not for US, as the small BMW isn't slated to come to our market anytime soon. Click through the gallery above to see what we're missing.