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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.

BMW won't bring front-drive 2 Series tourers to US

BMW may have rolled out a new front-drive 2 Series in overseas markets, but according to the latest from Automotive News, it won't be bringing it to the United States anytime soon. The model line consists of the 2 Series Active Tourer – the company's first front-drive model – and its extended counterpart, the 2 Series Gran Tourer, which was introduced just last week at the Geneva Motor Show. Though available with all-wheel drive, their front-drive underpinnings make them a radical departure for the Bavarian automaker, which has made a name for itself on rear-drive architecture. The development is not unlike the path which Mercedes has pursued with models like the A-Class hatchback, B-Class minivan, CLA four-door coupe and GLA crossover. BMW evidently thinks, however, that even in its longer Gran Tourer form, the 2 Series hatchback is still too small for the US market, where minivans have grown far beyond their miniature dimensions. The 2 Series name will continue to be offered on the rear-drive coupe and convertible that were spun off of the 1 Series and which are unrelated to the front-drive hatchback and minivan. The X1, however, is slated to switch to the front-drive platform shared with the company's Mini brand.

BMW, Mini recall nearly every PHEV model built in 2020 due to fire risk

BMW is recalling a majority of the plug-in hybrid models it built in 2020 because their battery pack poses a fire risk. That's 4,509 vehicles covered by the campaign in the United States, including some made by Mini. The list of cars affected by this voluntary recall includes 2020 and 2021 examples of the 530e, the X3 xDrive30e, and the Mini Countryman SE, coupe and convertible variants of the 2020 i8, as well as the 330e (pictured), the 745Le xDrive, and the X5 xDrive45e from the 2021 model year. All are equipped with a lithium-ion battery pack whose cells might have been contaminated by debris during the manufacturing process, according to a recall notice issued by the National Highway Traffic Safety Administration (NHTSA). BMW hasn't revealed what exactly found its way into the Samsung-built battery pack's cells, or how, but it pointed out the debris can cause a short-circuit, which increases the risk of fires and injuries. It added that it became aware of the problem after four gasoline-electric X5s experienced what it refers to as a thermal incident.  Engineers are currently developing a remedy to the problem. Until a solution is found, BMW is asking owners of affected cars not to charge the battery pack, not to drive in manual mode, not to engage sport mode, and not to use the shift paddles. It expects to begin fixing cars affected by the recall on November 23, 2020. 26,700 cars manufactured between January 20 and September 28, 2020, are part of the recall globally. Outside of the United States, BMW also sells plug-in variants of the X1, the X2, and the 2 Series Active Tourer. It has been a bad month for electrified cars. Ford delayed its Escape PHEV after a recall of its Kuga twin in Europe over fire risk. U.S. safety officials are reviewing reports of fires in the Chevy Bolt EV, and Hyundai has expanded a recall of the Kona EV. Featured Gallery 2021 BMW 330e View 14 Photos Green Recalls BMW MINI Hybrid